Tax & Spend
Yellen Says Higher Path for Rates Boosts Need to Lift Revenue
- Treasury chief says Biden to seek more revenue in budget talks
- Says 2% is her comfort threshold for interest-to-GDP metric
Photographer: Gabriel Bouys/AFP/Getty Images
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Treasury Secretary Janet Yellen said the outlook for higher interest rates over the long haul makes it tougher to contain US borrowing needs, heightening the importance of boosting revenue in negotiations with Republican lawmakers.
“We’ve raised the interest-rate forecast,” Yellen noted Friday in an interview with Bloomberg News. “That does make a difference. It makes it somewhat more challenging to keep deficits and interest expense under control.”