Treasury Secretary Yellen: Critically important that fiscal policy be responsible
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More from Treasury Secretary Yellen
critically important that fiscal policy be responsible
important that policy not impose tax increases on future generations.
Budget to be presented on Friday.
Budget will increase debt to GDP ratio a bit.
Real interest rate cost on federal debt is currently negative at current rates.
We have a problem in terms of deficits after 2030 due to an aging population.
Inflation we have seen in recent months have to do with supply shortages and bottlenecks as we get back to pre-pandemic full employment, it will be appropriate for interest rates to rise above current rock-bottom levels
Biden budget assumes that over time, rates will revert to low but more normal levels
Biden is proposing investments that will increase long run supply potential boost labor force participation