There is no certainty on whether the U.S will raise interest rates should President Biden’s $4 trillion spending plan be passed, according to The Wall Street Journal. The comments by Treasury Secretary Janet Yellen come after her earlier statements that interest might have to rise to keep the economy from further inflation.
Many Republicans feel that Biden’s administration spending proposals are costly and could cause stock inflation.
There was an increase in consumer prices from 1.7% in February to 2.6% in March at the end of the financial year.
Treasury yields rise means the Fed might have to raise the interest rates sooner than signaled.
Fed is not worried about a persistent rise in inflation with Ms. Yellen sighting that any near-term increase in prices may be temporary
U.S stocks are currently gaining as the dollar loses. SPY is up 0.36% in the premarket, QQQ is up 0.61% in the premarket, EURUSD is up 0.03%
