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.

In what context did Yellen mention the term 'transitory' and how did it relate to her discussion?

What are the expected outcomes of the pandemic rescue plan according to Yellen?