WASHINGTON (Reuters) – US Treasury Secretary Janet Yellen said on Friday that higher long-term Treasury debt yields are a sign that market participants are anticipating a stronger recovery, not a growing concern about inflation.
“I don’t see markets expecting inflation to rise above the Fed’s 2% inflation target as the average long-term inflation rate,” Yellen said in a PBS Newshour interview.
She added that the United States needs faster job growth than was seen in February, but can reach full employment by next year with President Joe Biden’s $ 1.9 trillion stimulus plan.
Reporting by David Lawder; Editing by Chris Reese