Yellen Wants to Hit Full Employment in 2022, but We Need to Look Beyond the Short Term
According to US Treasury Secretary Janet Yellen , the higher yields on long-term government bonds are not a sign that market players are expecting excessively high inflation.
Yellen rejected criticism of the economic stimulus plan, saying it was not a risk to inflation targets.
“I don't see markets expecting inflation to rise above the two percent inflation target, that the Fed has as the average inflation rate in the longer term,” Yellen said in a PBS Newshour interview. "Long-term interest rates have risen somewhat — but mainly, I think, because market participants see a stronger recovery," said the finance minister.
10-year government bond yields stabilized last week on Friday. They had previously climbed to their highest level in more than a year after the February labor mark...