The Finance Minister noted that the pledged expenses are expected to be evenly distributed over several years.
US Treasury Secretary Janet Yellen on Sunday sought to allay fears that President Joe Biden’s plans to develop infrastructure, create jobs, and support families will lead to higher inflation. As she explained, the costs will be implemented in stages over ten years.
“It’s all going to be spread out pretty evenly over eight to ten years, “Yellen, who previously led the Fed, said.
She said the Fed will keep a close eye on inflation and has the tools to deal with it if necessary.
“I don’t think that inflation will become a problem, but if it becomes a problem, then we have the tools to solve it. This is about the historic investment needed to make our economy productive and fair,” she said.
Biden’s plans are supposed to be funded by raising taxes on the wealthiest Americans (less than 1 percent of the population) and raising corporate taxes.
Some Democrats have expressed concerns that the tax hike will slow economic growth.
Yellen did not speculate on whether Biden would agree to a bill from Congress that would not contain an indication of the sources of funding for the expenses included in his plans. “He has made it clear that he believes that a permanent increase in spending should be funded, and I agree with that,” she said.