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(Reuters) - U.S. Treasury Secretary Janet Yellen said on Tuesday she sees no inflation problem brewing, downplaying earlier comments that rate hikes may be needed to stop the economy overheating as President Joe Biden’s spending plans boost growth.
FILE PHOTO: U.S. Treasury Secretary-designate Janet Yellen in Wilmington, Delaware, U.S., December 1, 2020. REUTERS/Leah Millis
The initial comments made by Yellen, a former Federal Reserve chair, deepened a sell-off in tech stocks and pushed longer-dated Treasury yields higher.
“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,” Yellen said in taped remarks to a virtual event put on by The Atlantic.
As India battles the second wave of Covid-19, there is uncertainty about the country’s near-term growth prospects. After the recessionary phase, India was slowly recovering from the pandemic-induced economic crisis. Yet, the second wave has put a dent on India’s economic recovery.
For FY22, Economic Survey and RBI projected India’s GDP growth rate at 11 per cent and 10.5 per cent, respectively. However, the achievement of this growth rate largely depends on how well the economy recovers from the Covid-19 shock. Though there hasn’t been a national lockdown yet, many states have opted for localized lockdowns or similar restrictions to control the spread of the virus.
It is too soon to talk about tapering the Federal Reserve's asset purchases and policymakers will send clear signals to the market when the time comes, Boston Federal Reserve Bank President Eric Rosengren said on Wednesday.
Inflation will be temporarily distorted this spring as the U.S. economy works through imbalances caused by the pandemic but the pressures should be short-lived and should not lead to a pullback in monetary policy, Boston Federal Reserve Bank President Eric Rosengren said.
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WASHINGTON (Reuters) - U.S. Treasury Secretary Janet Yellen plans to make her mark by naming a new supervisor for a major U.S. banking regulator that Democrats say was too friendly to large banks under the Trump administration, according to two people familiar with the matter.
FILE PHOTO: The United States Department of the Treasury is seen in Washington, D.C., U.S., August 30, 2020. REUTERS/Andrew Kelly
Yellen is expected to name Michael Hsu as the acting head of the Office of the Comptroller of the Currency (OCC), which regulates the country’s large banks. Hsu is currently associate director of the Fed’s bank supervision and regulation division, which shares responsibility for monitoring the nation’s largest banks.