Yellen spoke over the weekend, she does not believe the huge spending in the US will stoke inflationary pressures because:
- "It's spread out quite evenly over eight to 10 years"
And, besides, even if it does :
- "... but if it becomes an issue, we have tools to address it.
Spending in the plan is necessary:
- "These are historic investments that we need to make our economy productive and fair."
Yellen was speaking in an interview with NBC's Meet the Press show.
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The background to this is Biden’s pandemic stimulus and recovery plans totalling around US$6 trillion, proposed to be paid for in part by tax increases on the wealthiest in the US and by raising corporate taxes.
