Economics

Yellen Says Stimulus Unlikely to Cause Inflation Problem

  • IMF’s Georgieva applauds Biden’s ‘very progressive policies’
  • Treasury yields have surged amid worries over inflation
President Joe Biden’s $1.9 trillion package is expected to sail through the House. Kevin Cirilli reports.Source: Bloomberg)
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Treasury Secretary Janet Yellen dismissed fears that President Joe Biden’s $1.9 trillion pandemic-relief bill is so big that it will cause an inflation problem, as she seeks to push the recovery deeper into the U.S. labor market to address long-standing economic disparities.

Yellen called the impact on women and minorities from Covid-19 “absolutely tragic.” She has repeatedly rejected concerns that Biden’s stimulus is excessive given the economy’s signs of recovery, and that run-away inflation could damage the economy.