WASHINGTON (Reuters) – U.S. Treasury Secretary Janet Yellen said Friday that higher long-term yields on Treasury debt are a sign that market participants are expecting a stronger recovery, not from growing inflation concerns. .
“I do not see the markets expecting inflation to rise above the 2% inflation target that the Fed has as an average inflation rate in the longer term,” Yellen said in a PBS Newshour interview.
She added that the United States needs faster growth than was seen during February, but could reach full employment next year with President Joe Biden’s $ 1.1 billion stimulus plan.
Reporting by David Lawder; Edited by Chris Reese