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U.S. Treasury's Yellen tamps down inflation fears over Biden spending plan

EconomyMay 02, 2021 02:17PM ET
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2/2 © Reuters. Former Federal Reserve Chairman Janet Yellen speaks during a panel discussion in Atlanta 2/2

WASHINGTON (Reuters) -U.S. Treasury Secretary Janet Yellen on Sunday tamped down concerns that President Joe Biden's plans for infrastructure, jobs and families will cause inflation, saying the spending will be phased in over a decade.

"It's spread out quite evenly over eight to 10 years," Yellen, former Federal Reserve chair, said in an interview with NBC's "Meet the Press."

She said the Federal Reserve will monitor inflation carefully and has the tools to address it if necessary.

"I don't believe that inflation will be an issue but if it becomes an issue, we have tools to address it. These are historic investments that we need to make our economy productive and fair."

Biden's pandemic stimulus and recovery plans total around $6 trillion and will be paid for in part by a series of tax increases on the wealthiest Americans, less than 1% of the population, and on raising corporate taxes.

Cecilia Rouse, chair of the White House National Economic Council, said there is no evidence that portends runaway inflation.

"So when we get to the other side of this pandemic, I fully expect that our labor market will come back and be flourishing," Rouse said on "Fox News Sunday."

"But for the time being, we expect at most transitory inflation, that is what we expect coming out of a big recession."

Some Democratic lawmakers have expressed concerns that the tax increases would slow economic growth.

Yellen would not speculate on whether Biden would accept a bill from Congress that does not include a way to pay for the spending increases in his plans.

"He has made clear that he believes that permanent increase in spending should be paid for and I agree," she said.

Biden administration officials have said a significant cut in the corporate tax rate in 2017 by Republican Donald Trump did not result in a similar increase in investment and corporate competitiveness.

"We do not want to be hampering corporations but we do want to ensure that they are paying their fair share as well," Rouse said.

U.S. Treasury's Yellen tamps down inflation fears over Biden spending plan
 

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Comments (25)
Steve Lora
Steve Lora May 03, 2021 12:31AM ET
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biden will be in late stages of dementia by 2023
Heine Pedersen
Heine Pedersen May 03, 2021 12:31AM ET
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He is doing better than Trump ever did.
Larry Deangelis
Larry Deangelis May 02, 2021 7:01PM ET
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if your old enough to remember Captain Kangaroo. then you can see Yellen is obviously his daughter
Kenneth Jarvis
Kenneth Jarvis May 02, 2021 7:01PM ET
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Yes sir. Exactly. I would rather see Captain Kangaroo in her job position though.
Kenneth Jarvis
Kenneth Jarvis May 02, 2021 7:01PM ET
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Yes sir. Exactly. I would rather see Captain Kangaroo in her job position though.
Klaus Weyers
Klaus Weyers May 02, 2021 6:48PM ET
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yellen and sleepy joe.. a disaster for all productive people.. but the looters and dems will reap what they are sowing.. major crash coming
Show previous replies (1)
Jason Mills
Jason Mills May 02, 2021 6:48PM ET
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When they pass the infrastructure bill, you're just seeing the beginning of a new cycle. Not to say there won't be a big correction soon, but there were many major Corrections under Donald Trump too. It is just natural and normal
Eric Carlson
Eric Carlson May 02, 2021 6:48PM ET
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Never invest based on politcs. It clouds your judgement. Too many other factors that impact the market more, starting with the Fed.
perplexed76 .
perplexed76 . May 02, 2021 6:48PM ET
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i'm sorry to remind you but yellen and powell were pointed by energizer trump
Heine Pedersen
Heine Pedersen May 02, 2021 6:48PM ET
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What productive people.. You?
Heine Pedersen
Heine Pedersen May 02, 2021 6:48PM ET
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And a crash is of coming. But it's not their fault. Genius 🙄👏
John Ehrensberger
John Ehrensberger May 02, 2021 6:40PM ET
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Wow, sad we have people like this giving guidance about our economy's future. Biden for 2024 👎
Silence Dogood
Silence Dogood May 02, 2021 6:23PM ET
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She’s completely clueless.
New Jazenevd
New Jazenevd May 02, 2021 6:11PM ET
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She and that senile fool in wh should pay for this spending from own pockets.
Mart Bab
Rubberduck1973 May 02, 2021 5:48PM ET
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What part of transitory inflation is so difficult  to comprehend. Buy gold and stop acting like you are the finance minister or the FED. Inflation is not a bad thing, no more then stagflation is. It is a fase in economic recovery. Deal with it and buy gold.
Mart Bab
Rubberduck1973 May 02, 2021 5:48PM ET
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If you trade against the fed, you loose
trevor hron
trevor hron May 02, 2021 5:48PM ET
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I think holding gold silver is a great way to go. I hold some ETF’s for miners as well SIL GDX
Angus Malarkey
Angus Malarkey May 02, 2021 5:48PM ET
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Knowledge of economics and spelling are not your strengths.
Atlantic Coast Money
Atlantic Coast Money May 02, 2021 5:32PM ET
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LOL! However, not really funny.
igor Volkovinsky
igor Volkovinsky May 02, 2021 5:26PM ET
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The inflation is here and real and will be much worse. Listen to Peter Schiff interviews about infrastructure spending , printing money, gold prices
Dave Jones
Dave Jones May 02, 2021 4:35PM ET
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6 trillion by taxing the rich and corporate tax? LMAO like that's ever gonna happen!!!
Vlad Lozovskiy
Vlad Lozovskiy May 02, 2021 4:31PM ET
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If government tells you there is no inflation.  This means inflation is here and it is real
Steve Lora
Steve Lora May 02, 2021 3:29PM ET
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There isn't any real inflation give or take 2%. That was true under Trump as well
Rick Williams
Rick Williams May 02, 2021 3:29PM ET
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not true ever hear of shrink flation , they are selling less Oz of food for the same price.
Jamie Blankfein
Jamie Blankfein May 02, 2021 3:29PM ET
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Guess you better look at the price of lumber steel plastic energy the stuff used to make things like hones and vehicles. triples and doubles in one year. Just sayin. Cost must be passed on or corporate profits will tankand margin conpress at unpresidented rates Highest real inflation since volker’s days as fed chair. Not transitory folks. Janet is so wrong!
Jason Mills
Jason Mills May 02, 2021 3:29PM ET
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it's funny you bring up steel because the steel industry was almost bankrupt under Donald Trump due to his irrational trade Wars. Now that we have a real president in there u.s. steel and other steel companies are skyrocketing.
Connecticut Yankee
A_Jaundiced_Eye May 02, 2021 2:02PM ET
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Interesting slip of the tongue by Yellen: " She said the Federal Reserve will monitor inflation carefully ....but if it becomes an issue, we have tools to address it." Janet, you're not on the Fed anymore!
Stratus Angelacus
Stratus Angelacus May 02, 2021 2:02PM ET
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Look again. She looks like a parrot. Haha
Kaveh Sun
Kaveh Sun May 02, 2021 1:20PM ET
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Politic aside, this keepsthe market up. We little guy has zero power. It is boyond st/u/p/id to not get ez money in this market while it lasts.
Yankee Steve
Yankee Steve May 02, 2021 12:17PM ET
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Honestly, you guys aint see nothing yet, the farce on the green new deal is a joke. Look at his plan. Ok more EV and electrical charging stations. Ask uourself the question. Where is the source of energy to generate electricity? Fossil fuel, natural gas and coal. Solar and wind is negligible. Where is the plan to build more nuclear plan? It is the cleanest. Where is the maglev train or the hyperloop for transportation? Planes jept burning fossil fuel. Now you know why i call his green new deal a farce. It is for the rich on Wall Street who already went in early on it and made their money. Look at all the charts. FCEL, BE, WKSH, FUV, RIDE and the likes. Pump and dump and you guys are holding the bag. Rinse and repeat
CHAD TENDIES
CHAD TENDIES May 02, 2021 12:09PM ET
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Lying criminal
Jason Mills
Jason Mills May 02, 2021 12:09PM ET
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who Trump?
quiring adena
quiring adena May 02, 2021 12:07PM ET
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Good rate market booster...
Jason Mills
Jason Mills May 02, 2021 11:28AM ET
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These investments will boost the economy by bottom-middle up demand side economics. America has sorely needed these investments made for a long time. So many negative comments on here. Biden is doing a heck of a job; million times better than the previous guy
danny Levine
danny Levine May 02, 2021 11:28AM ET
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there is no value being created when you print money. in the end everyone's wealth gets diluted
Catholic Man
CatholicMan May 02, 2021 11:28AM ET
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Funniest comment I’ve read today. We will have a lot to fix when good people get back in office.
Jason Mills
Jason Mills May 02, 2021 11:28AM ET
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Catholic Man I have gained more money in my portfolio in the last 3 months than I did in the entire four years of Donald Trump so maybe you should look at the numbers instead of having a political bias?
rizwan aslam
rizwan aslam May 02, 2021 11:25AM ET
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She wrong
danny Levine
danny Levine May 02, 2021 11:19AM ET
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evil woman who cares nothing about ordinary people
Roger Miller
Roger Miller May 02, 2021 11:09AM ET
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She sould read the news, everyone is talking price increases, even Warren Buffet. Won’t be long before the stimulus checks and enhanced unemployment benefits are more than offset by inflation.
Connecticut Yankee
A_Jaundiced_Eye May 02, 2021 11:09AM ET
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"Won’t be long before the stimulus checks and enhanced unemployment benefits are more than offset by inflation." At which point, the solution will be...MORE STIMULUS. It will never end !!! "Welcome to Zimbabwe."
tom joe
tom joe May 02, 2021 11:07AM ET
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Yellen running cover for Biden's incompetency.
MK MK
MK MK May 02, 2021 10:23AM ET
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Greedy yankies try to fool other countries. You have inflation and hopefully you will get big devaluation of USD, which will cause hiperinflation. You deserve this
Алексей Гапеев
Алексей Гапеев May 02, 2021 10:23AM ET
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arguments please
Rick Williams
Rick Williams May 02, 2021 10:23AM ET
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hope you are wrong
johnny kay
johnny kay May 02, 2021 10:06AM ET
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good news
Stephen Fa
Stephen Fa May 02, 2021 9:53AM ET
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lies, lies, and more lies
Churn NBurn
ChurnNBurn May 02, 2021 9:53AM ET
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lies, lies, and damned lies
 
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