Treasury Secretary Yellen says rates may need to rise somewhat to keep economy from overheating
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Treasury Secretary Janet Yellen admitted on Tuesday that interest rates may have to rise to contain burgeoning growth in the U.S. economy driven in part by billions of dollars in government stimulus spending.
“Interest rates may need to rise somewhat to ensure our economy does not overheat,” Yellen said at an economic seminar presented by Th Atlantic. “Even though the additional spending is relatively small relative to the size of the economy, it could result in very modest increases in interest rates.”
“But these are investments that our economy needs to be competitive and productive,” she added.
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