US Treasury Secretary’s Interest Rate Warning

US Treasury Secretary Janet Yellen made assessments on the economic agenda at an event organized by Fortune.

Stating that inflation has fallen in the near term against the backdrop of an extremely strong labor market, Yellen said: “I am very optimistic about the US economic outlook.” saying.

Yellen emphasized the importance of sustainable fiscal policy and stated that the current level of debt is manageable.

Stating that high long-term interest rates may pose a threat, Yellen said: “Our forecast assumes that interest rates will rise towards more normal levels, but especially in recent months, we see a very significant increase not only in the 10-year bonds.” nominal interest rates, but also in real interest rates.” he said.

‘TO CONTROL INFLATION…’

Yellen stated that interest rates can remain high for a longer period to control inflation, but in the medium term interest rates will return to more normal levels.

Yellen said long-term interest rates may be higher than previously thought.

Noting that the United States is too dependent on China in some critical areas, Yellen said the country should eliminate some of these risks without completely separating from China.

When asked about advances in artificial intelligence, Yellen said progress in this field is “incredibly fast” and can make a significant difference in productivity. (AA)