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