Treasury Secretary Janet Yellen said “she is neither predicting nor recommending that the Federal Reserve raise interest rates as a result of President Biden’s spending plans, walking back her comments earlier in the day that rates might need to rise to keep the economy from overheating,” the Wall Street Journal reports.
“Ms. Yellen suggested earlier Tuesday that the central bank might have to raise rates to keep the economy from overheating, if the Biden administration’s roughly $4 trillion spending plans are enacted. Ms. Yellen’s remarks come as lawmakers debate the merits of the administration’s spending proposals, which many Republicans have said are too costly and risk stoking inflation.”
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