US Treasury Secretary Janet Yellen is in support of higher interest rates terming them beneficial to the country.
- Yellen has supported President Biden’s $4 trillion budget likely to push inflation further into 2022 with increased interest rates.
- Advocates for the increase of taxes term inflation as temporary as has been occasioned by Covid-19 and critics claiming the increase is due to government’s aid contributing to higher costs.
- Biden’s proposal could add $400 billion in spending yearly, and not capable of excess inflation.
- US has previously complained of very little inflation and interest rates and the new rates being fought could actually lead to the desired normal rate.
Consumer price index for financial year ending April went up by 4.2%, those of May are expected on Thursday.
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