Janet Yellen: Biden’s Economic Plan is Unlikely to Cause Inflationary Pressure
Yellen: Biden’s economic plan will not stimulate inflation
US Treasury Secretary Janet Yellen said that Biden’s economic plan is unlikely to cause inflationary pressure, because the boost to demand will be spread over the next ten years.
“I don’t think inflation will be a problem. Even if it becomes a problem, we have a way to solve it. The implementation of the economic growth plan will be spread evenly over the next 8-10 years, so the boost to demand is moderate.”
Yellen also said that the United States has “fiscal space” for investment activities, and interest rates are very low and are likely to remain at such a low level, but in the long run, it needs to “control” the budget deficit.
Another senior economic adviser of the Biden administration said that as the economy recovers from the epidemic, inflation in certain economic sectors is “temporary.”
Cecilia Rouse, chairman of the White House Council of Economic Advisers, said that supply chain issues and labor market shortages are “obstacles” to recovery.
She said on Sunday that she has not yet felt that these price increases will affect long-term inflation expectations, and she promised to remain vigilant against inflationary pressures.
She said: “At present, we expect at most temporary inflation. This is what we expected to happen in the process of exiting the Great Recession.”