WASHINGTON (Reuters) – US Treasury Secretary Janet Yellen said on Friday that the higher yields on long-term Treasury debt were a sign that market participants were anticipating a stronger recovery, not greater concerns about inflation.
“I don’t see that the markets are expecting inflation to rise above the Fed’s 2% inflation target as an average long-term inflation rate,” Yellen said in an interview with PBS Newshour.
She added that the United States needs faster job growth than seen in February, but can achieve full employment next year with President Joe Biden’s $ 1.9 trillion stimulus plan in place.
Reporting by David Lawder; Chris Reese’s Edition