Yellen says higher government bond yields are a signal of recovery, not inflation

FILE PHOTO: Federal Reserve Chairman Janet Yellen speaks at a press conference following a two-day Federal Open Markets Committee (FOMC) policy meeting in Washington, US, September 20, 2017. REUTERS / Joshua Roberts

WASHINGTON (Reuters) – US Treasury Secretary Janet Yellen said on Friday that higher long-term Treasury yields were a sign that market participants expected a stronger recovery, not increased inflation concerns.

“I don’t see the markets expect inflation to rise above the 2% inflation target that the Fed has as longer-term average inflation,” Yellen said in a PBS Newshour interview.

She added that the United States needs faster job growth than in February, but could achieve full employment next year with President Joe Biden’s $ 1.9 trillion stimulus plan.

Reporting by David Lawder; Editing by Chris Reese

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