Yellen says higher Treasury yields signal recovery, not inflation

[WASHINGTON] US Treasury Secretary Janet Yellen on Friday said higher long-term Treasury debt yields were a sign market participants were anticipating a stronger recovery, not of increased inflation concerns.

"I don't see that the markets are expecting inflation to rise above the 2 per cent inflation objective that the Fed has as an average inflation rate over the longer run," Ms Yellen said in a PBS Newshour interview.

She added the United States needs faster job growth than seen during February, but can reach full employment by next year with President Joe Biden's US$1.9 trillion stimulus plan in place.

REUTERS