Yellen Says Rates May Rise to Prevent Overheating

Treasury Secretary Janet Yellen discussed the potential for economic overheating due to increased spending, which could lead to modest interest rate hikes. Her comments caused market concerns, although she clarified that the spending is part of long-term plans to boost growth. Yellen emphasized that the administration's plans aim to fill economic gaps and enhance growth without immediate inflation concerns.

What did Janet Yellen suggest might happen due to additional government spending?

• A decrease in economic growth

• A modest increase in interest rates

• A reduction in inflation

• An immediate recession

Why are Janet Yellen's comments taken seriously by the market?

• She is a well-known economist

• She is the current Chair of the Fed

• She predicted the last financial crisis

• She is the Treasury Secretary and former Fed Chair

What was Janet Yellen's main point regarding the Biden administration's spending plans?

• They will lead to immediate inflation

• They are likely to cause a recession

• They will result in higher taxes

• They will support long-term economic growth

What is the expected impact of the pandemic rescue plan according to Yellen?

• It will lead to a decrease in employment

• It will cause a significant rise in interest rates

• It will create a new economic bubble

• It will fill the economic gap caused by the pandemic

What does Yellen say about the potential for interest rates to rise?

• They will rise at some point in the future

• They are expected to rise immediately

• They will never rise

• They will decrease in the near term