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Janet Yellen: Interest rates may need to rise to ensure âeconomy doesn t overheatâ
By Kelsey Ramirez article
Janet Yellen said if inflation continues to rise, interest rates may need to increase to keep the economy from overheating. (iStock)
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With the threat of inflation on the horizon, Treasury Secretary Janet Yellen said interest rates may need to rise to combat the potential risk. 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 at a virtual event hosted by The Atlantic. It could cause some very modest increases in interest rates to get that reallocation, but these are investments our economy needs to be competitive and to be productive [and] I think that our economy will grow faster because of them.