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Greater rates of interest can 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 can be constructive 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 annually — 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 atmosphere it will really be a plus for society’s standpoint and the Fed’s standpoint,” Yellen instructed Bloomberg.

“We have been preventing inflation that is too low and rates of interest which can 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 nasty factor — that is factor.”

Read the full Bloomberg report here.