Yellen: "No Inflation Even with Economic Stimulus"… Commerce Secretary Prefers Strong Dollar

Confident No Inflation Even After Injecting $1.9 Trillion

[Asia Economy New York=Correspondent Baek Jong-min] = Janet Yellen, U.S. Treasury Secretary, predicted that the U.S. labor market, which was hit by the COVID-19 pandemic, will recover to normal levels after the end of the year. Gina Raimondo, Secretary of Commerce, hinted at acceptance of the strong dollar.

[Image source=AP Yonhap News]

Secretary Yellen made these remarks during a virtual dialogue with Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), on the occasion of International Women's Day.

Secretary Yellen stated, "I believe there is a prospect that if full efforts are made for vaccination and school normalization, the labor market can truly get back on track by the end of this year or next year."

Secretary Yellen expressed concern that "the COVID-19 crisis could leave permanent scars. We are working to return to normal as quickly as possible," indirectly emphasizing that without the $1.9 trillion stimulus package passed by the Senate, the U.S. economy would suffer significant damage.

Managing Director Georgieva also praised the U.S. policies aimed at helping the poor as "very progressive and serious."

Secretary Yellen also dismissed concerns that the stimulus package would cause inflation.

In an interview with MSNBC, Secretary Yellen said, "Before the COVID-19 pandemic, the unemployment rate was only 3.5%, but there were no signs of inflation. Even if prices rise and cause problems, the administration has tools to respond."

Secretary Yellen's remarks came a day before the House vote on the stimulus bill that passed the Senate on the 6th.

Secretary Raimondo denied the need to induce a weaker dollar.

In an interview with CNN, when asked if she would support a weaker dollar, Raimondo said, "Secretary Yellen is the expert in that area, but I believe a strong dollar is in the interest of the United States."

This can be interpreted as an expectation that the dollar value will rise as the U.S. economy recovers rapidly.

Meanwhile, as of 3 p.m. on the same day, the yield on the U.S. 10-year Treasury note was at 1.596%. It rose to 1.613% in the morning but the increase slowed afterward.

The dollar index, which shows the value of the dollar against major currencies, was up 0.41% at 92.368. Although the dominant expectation was that the dollar value would fall due to the large-scale stimulus package, it has recently recovered to the level of late November last year along with the rise in U.S. Treasury yields.

This content was produced with the assistance of AI translation services.