Yellen Says Interest Rates May Have to Rise to Keep Economy From Overheating
By Kate Davidson
WASHINGTON -- Treasury Secretary Janet Yellen said Tuesday that
it is possible the Federal Reserve may have to raise interest rates
to keep the economy from overheating if the Biden administration's
spending plans are enacted.
President Biden has proposed roughly $4 trillion of new spending
on infrastructure and social programs over the next decade,
including funding for roads and bridges, research and development,
affordable child care and paid family leave.
"It may be that interest rates will have to rise somewhat to
make sure that our economy doesn't overheat, even though the
additional spending is relatively small relative to the size of the
economy," she said in a prerecorded interview at the Atlantic's
Future Economy Summit.
(END) Dow Jones Newswires
May 04, 2021 14:13 ET (18:13 GMT)
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