Yellen: Biden's phased-in spending plan won't fuel inflation

Yellen: Biden's phased-in spending plan won't fuel inflation Photo: GMA

MARCY GORDON/AP Business Writer
Created: May 02, 2021 04:58 PM

WASHINGTON (AP) - Treasury Secretary Janet Yellen says President Joe Biden’s massive proposed spending on infrastructure, families and education won’t fuel inflation because the plans would be phased in gradually over 10 years.

Some economists have warned that the Federal Reserve’s current ultra-low interest rates, and the administration’s proposed $4 trillion in new spending, atop about $5 trillion already approved by Congress, risk accelerating inflation.

Yellen says she doesn't believe that inflation "will be an issue, but if it becomes an issue, we have tools to address it.”

The former Fed chair says the central bank “has the tools to redress inflation should it arise.”

Credits

MARCY GORDON/AP Business Writer

Copyright 2021 The Associated Press. All rights reserved.

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