Yellen Spooks Markets With Fed-Like Comments: "Rates May Have To Rise Somewhat"
Mike (Mish) Shedlock | May 05, 2021 01:23AM ET
Stocks dipped a bit on Tuesday following comments by Treasury Secretary Janet Yellen on interest rates.h2 Unofficial Dual Role/h2
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."
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?"
h2 Meaning Of Somewhat/h2Yesterday, 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?
Get The News You Want
A Word About Messy Tapering
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.