WASHINGTON (AP) – Finance Minister Ethan Yellen says fears that the administration’s $ 1.9 trillion bailout bill could spur rapid inflation are unfounded.
In an interview with MSNBC on Monday, Yellen said the measure, which would provide millions of Americans with $ 1,400 in inspections, as well as other assistance, would help the economy return to full employment by next year.
Responding to the fears of some economists that the measure could transform the economy very quickly and cause higher inflation, Yellen said. “I do not think it will happen. “Before the epidemic we had an unemployment rate of 3.5%, և there were no signs of rising inflation.”
Unemployment was at a half-year low of 3.5% in February last year, before the epidemic lost 24 million jobs, and inflation was below the Fed’s target of 2%.
Yellen said inflation was “too low” during very low unemployment.
He said that if inflation really becomes a problem, “there are tools to solve it”, “policy makers will carefully follow the situation” and will be ready to act.
The House is expected to finalize the bailout this week, the administration said, adding that the president will sign the bill as soon as it reaches his table. Extended unemployment benefits for Americans are scheduled to expire on March 14 if new legislation is not passed.