U.S. Treasury Secretary Yellen said today that if President Biden's latest spending proposal takes effect and the economy becomes warmer, U.S. interest rates may need to be raised "slightly" to curb inflation.

U.S. Treasury Secretary Yellen (Janet Yellen) said today that if President Biden 's latest spending proposal takes effect and the economy becomes warmer, then U.S. interest rates may need to be raised "slightly" to curb inflation . Ye Lun's words caused a small storm, and the stock price also fluctuated. She later clarified that she was not predicting or suggesting that the Federal Preparation Council (FED) should raise interest rates. Biden promoted a $1.9 trillion anti-epidemic relief package after it was approved by Congress in March this year, and introduced two more proposals, which will cost nearly $4 trillion in total in 10 years, with part of the source of finance coming from tax increases to businesses and the rich. 2019 coronavirus disease (COVID-19) epidemic has caused the economic downturn in 2020, and the related expenditure plan is to repair the US economy. Yellen said in the preview of the interview with The Atlantic: "Interest rates may need to be raised a little to ensure our economy does not overheat." However, she said, "these increased spending is relatively smaller than the scale of the economy" and is longer than the time structure of the anti-epidemic relief case. The relief case is mainly aimed at the blazing needs of labor and families. Joint Commission urged to maintain interest rates almost zero until the employment rate recovers and inflation reaches the target level of more than 2%. However, economists and investors warn that government spending will create an inflation spiral, that is, the interaction between wages and rising prices will lead to continued price increase. Jerome Powell, chairman of the Federal Reserve Association, and others have been trying to downplay these doubts, saying that the short-term rise in prices is a rebound after the unprecedented impact of the epidemic and is also due to the temporary supply problem when economic activities recover. Yellen also served as the chairman of the FCC before Ball, and she also agreed that rising prices are only temporary.