U.S. Treasury Secretary Yellen said on Friday (5th) that the rise in the yield of U.S. long-term debt reflects market expectations of a stronger economy, and does not mean that inflation concerns have risen. Obviously, he has stood with officials including Fed Chairman Bower. On the same front. Although the non-agricultural employment population jumped in February, she said that it will take two years for the United States to achieve full employment, and Congress should act boldly to pass President Biden’s stimulus plan as soon as possible.
In an interview with PBS Newshour, Yellen said: “I don’t think the market is predicting that the inflation rate will rise above 2%, which is what the Fed sees as a longer-term average inflation rate.”
She said that if rising inflation is a problem, the Fed has the tools to deal with it, and she doesn’t think the market is worrying about it.
The market is worried that extremely loose fiscal and monetary stimulus will lead to economic overheating and rapid inflation. Recently, the yield of long-term US Treasury bonds has risen rapidly, triggering financial market turmoil. Fed Chairman Ball said on Thursday that inflation may rise temporarily, but it is not enough to prompt the Fed to raise interest rates; St. Louis Union Bank President James Bullard and other officials also said on Friday that the increase in yields reflects economic growth expectations. improve.
Yellen also once again called on Congress to promote bold fiscal stimulus and pass 1.9 trillion yuan as soon as possible.U.S. dollarStimulus package. She said that the United States needs stronger employment growth than the non-agricultural report in February. Congress should not reduce its stimulus power because of the bright data. Even if the stimulus plan is implemented, it will take two years for the United States to fully recover before the end of next year. Employment.
The non-agricultural employment population in the United States increased by 379,000 in February, which was better than the market forecast of 182,000, and the unemployment rate fell to 6.2%. After falling for the first time in eight months in December, non-agricultural employment increased by 166,000 in January and accelerated growth in February.
Yellen said: “We must act boldly now, and we have the ability to act boldly. The most important thing is to get the economy back on track, help people return to normal lives, and ensure that the epidemic will not cause permanent damage to the American workforce.”
Yellen believes that it is an excessive inference from the unemployment rate in February that the labor market is improving because the unemployment rate does not include the 4 million people who stopped looking for work but withdrew from the labor market. She estimated the real unemployment rate to be 10%.
The U.S. House of Representatives voted to pass the stimulus bill last week, and it is now being debated in the Senate. Although the Democrats have a decisive vote in the Senate, considering that Republicans will not vote for any votes, the Democrats cannot vote for a single 50. less.
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