US Treasury Secretary Janet Yellen does not believe Biden’s spending will fuel inflation

Yellen spoke over the weekend, she does not believe the huge spending in the US will stoke inflationary pressures because:

  • “It’s spread out quite evenly over eight to 10 years” 

And, besides, even if it does :

  • “… but if it becomes an issue, we have tools to address it. 

Spending in the plan is necessary:

  •  “These are historic investments that we need to make our economy productive and fair.”

Yellen was speaking in an interview with NBC’s Meet the Press show. 

The background to this is Biden’s pandemic stimulus and recovery plans totalling around US$6 trillion, proposed to be paid for in part by tax increases on the wealthiest in the US and by raising corporate taxes.

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