Yellen says the Treasury is increasing signal recovery yields, not inflation

FILE PHOTO: Federal Reserve Chair Janet Yellen speaks at a news conference after a two-day Federal Open Markets Committee (FOMC) political meeting in Washington, USA, September 20, 2017. REUTERS / Joshua Roberts

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

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