Increased rates of interest could be good for the nation, Treasury Secretary Yellen says

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U.S. Treasury Secretary Janet Yellen speaks throughout a information convention, after attending the G7 finance ministers assembly, at Winfield Home in London, Britain June 5, 2021.

Justin Tallis | Rueters

U.S. Treasury Secretary Janet Yellen stated that President Joe Biden‘s $4 trillion spending proposal could be optimistic for the nation, even when it results in an increase in rates of interest.

During an interview with Bloomberg News, the previous Federal Reserve chair stated the president’s plans would whole about $400 billion every year — a degree of spending she argued was not sufficient to create an inflation over-run.

“If we ended up with a barely larger rate of interest surroundings it might truly be a plus for society’s perspective and the Fed’s perspective,” Yellen advised Bloomberg.

“We have been preventing inflation that is too low and rates of interest which might be too low now for a decade,” she stated. She added that if the packages assist in any respect to “alleviate issues then that is not a foul factor — that is a very good factor.”

Read the full Bloomberg report here.