Stocks dipped a bit on Tuesday following comments by Treasury Secretary Janet Yellen on interest rates.
Unofficial Dual Role
Continuing her unofficial dual role as a Fed president as well as President Joseph Biden's Treasury Secretary, Janet Yellen commented in an Atlantic interview Rate May Have to Rise Somewhat to prevent overheating.
“It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat, even though the additional spending is relatively small relative to the size of the economy,” Ms. Yellen said when asked if the economy could handle the kind of robust spending that the Biden administration is proposing.
“I think that our economy will grow faster because of them,” Ms. Yellen said of the proposed investments, such as research and development spending."
Tools? Who Has the Tools?
Biden wants to increase spending by $4 trillion with Progressives wanting even more.
Yesterday, I commented Yellen Discusses Inflation Tools As If She Was Still the Fed Chair
In a fluff interview on Meet the Press (see above link) Chuck Todd asked Yellen about inflation. She said the Fed has tools but twice went on to say "we" as if she was still on the Fed.
"We will monitor that [inflation] very carefully. I don't believe inflation will be an issue but if it becomes an issue we have tools to address it," said Yellen.
In response, I asked "Who is we? What tools does the Treasury Secretary have or is Yellen still on the Fed?"
Meaning Of Somewhat
Yesterday, Yellen continued her dual role as a Fed President and Treasury Secretary. Now everyone gets to debate the meaning of "somewhat".
Addendum: No Rookie Error
What About the California Board of Education?
A Word About Messy Tapering
