Expects the Federal Reserve to maintain economic stability.
On Tuesday, Secretary of the Treasury Janet Yellen indicated that national interest rates might have to increase due to the president’s infrastructure and family spending plans. When asked about President Biden’s plan to boost national spending to stimulate the economy, Secretary Yellen said, “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.”
Secretary Yellen later clarified that she was not “predicting or recommending” that interest rates would go up, but rather that those safety valves were in place at the Federal Reserve if needed. Federal Reserve Chairman Powell has noted that the recent increase in prices in various sectors is likely a temporary situation, and does not expect to increase interest rates this year.
As the Lord Leads, Pray with Us…
- For Secretary Yellen to seek God’s guidance as she evaluates the national economy.
- That the Federal Reserve would be able to support a stable economy.
- For the president’s administration to have the wisdom to help the country recover from economic hardship.
Sources: The Hill, Washington Post, CNBC
