Yellen "No Inflation Concerns"... Refutes Buffett's Worries

White House Chief of Staff Emphasizes Negotiation with Republicans
Progressive Sanders: "Wealthy and Big Corporations Should Bear Infrastructure Investment Costs"

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Janet Yellen, U.S. Treasury Secretary, dismissed concerns that the massive infrastructure investment plan promoted by President Joe Biden would trigger inflation.

In an interview with NBC on the 2nd (local time), Secretary Yellen said that the spending proposed in Biden’s American Jobs and Families Plan is evenly distributed over the next 8 to 10 years, so there is no concern about inflation.

Yellen’s remarks contrast with billionaire investor Warren Buffett’s statement a day earlier that "we are seeing significant inflation."

Yellen said the Federal Reserve (Fed) is monitoring inflation closely, adding, "I don’t think inflation will be a problem, but if it becomes one, we have the tools to address it." Fed Chair Jerome Powell has emphasized that while some inflation increase will be tolerated for the time being, there are tools to handle excessive rises.

As the U.S. economic recovery becomes visible recently, inflation concerns are also rising. The U.S. economic growth rate in the first quarter reached 6.4% annualized. Personal income in March increased by 21% due to government cash payments, and personal spending rose by 4.2%. The consumer price index (CPI) in March rose by 2.6%.

Secretary Yellen also stressed that President Biden’s spending plan is a "historic investment necessary to make our economy productive and fair."

President Biden requested a roughly $4 trillion investment budget from Congress for the physical infrastructure investment ‘Jobs Plan’ and the ‘Families Plan’ focused on childcare and education, but faces opposition from the Republican Party.

On the same day, Senator Susan Collins, a Republican close to the moderate camp, criticized the Biden administration’s infrastructure investment plan as excessive.

For President Biden to pass the infrastructure bill, party discipline within the Democratic Party is also crucial. Senator Joe Manchin, who leans conservative within the Democratic Party, opposes Biden’s plan. If he does not align with President Biden, passing the infrastructure bill in a Senate split 50-50 between parties is virtually impossible.

With strong opposition from Republicans and even some Democratic lawmakers, the White House is attempting negotiations.

White House Chief of Staff Ron Klain revealed that he invited Senator Shelley Moore and others to the White House, saying he will cooperate with Republicans. Klain said, "We will work with Republicans to find common ground."

White House Senior Advisor Anita Dunn also said, "If possible, we want to push a bipartisan infrastructure investment package," and claimed, "President Biden is willing to compromise."

President Biden is proposing to raise the corporate tax rate from the current 21% to 28% and increase the capital gains tax rate from the current maximum of 20% to 39.6%.

Progressive Senator Bernie Sanders emphasized expanding the tax burden on the wealthy and corporations again on the same day. He pressured, "The wealthy and large corporations must pay their fair share of taxes so that we can rebuild America and create the jobs we need."

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