Janet Yellen Shrugs off Threat of Inflation and Persists With the Implementation of President Joe Biden’s Budget

Janet Yellen, the U.S. Treasury Secretary, is still very optimistic about the implementation of President Joe Biden’s 4 Trillion Dollars budget plan. She says whatever inflation it may give rise to is beneficial for the country.

President Joe Biden Pandemic Stimulus Budget

The U.S. Presidency has earlier proposed a bill to alleviate the effects of the COVID-19 and to cater for economic recovery and growth. The sum of the budget amounts to 4 Trillion Dollars. The money would be spent on projects like the production and testing of vaccines, minimum wage increment, extra support for the unemployed, and additional resources for local and state governments among many other expenses. The money would be raised from increased taxes on rich Americans and corporations. There have been criticisms from several quarters about the perceived extravagant spending plan by President Joe Biden. In addition, there have been notions that the budget will lead to inflation of goods and services in the United States.

What Has Been Said Before by Yellen

Janet Yellen is in support of the project, and she had defended the proposal in an interview earlier in the year on the 2nd of May 2021. She said there were plans to spread the budget over ten years to temper the potential effect of inflation. She also said in a situation where inflation comes up, necessary tools will be used to fight it.

Slight Inflation Will Be Beneficial

Over the weekend, in another interview, Janet Yellen says the budget would still be implemented even if it will eventually lead to a rise in inflation. The U.S. treasury secretary says a slight increase in inflation and interest rate will be beneficial for the country. The country has always been fighting against extremely low interest rates and inflation and if the projects help to achieve that, then it will be a success, she says.

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