Yellen Admits Inflation Is About to Surge But Says It Will Be ‘Plus For Society’s Point of View’

Increased inflation could ultimately be a net positive for the U.S. economy and large government spending won’t overheat the economy, Treasury Secretary Janet Yellen told Bloomberg.

Treasury Secretary Janet Yellen, who previously chaired the Federal Reserve, said the central bank has been more concerned about inflation levels that are too low, according to Bloomberg. Increasing consumer prices could signal a return to normal, she said.

“We’ve been fighting inflation that’s too low and interest rates that are too low now for a decade,” Yellen told Bloomberg in an interview Sunday.

Yellen acknowledged that there may be a “spurt” in prices as a result in higher spending, but that it would be temporary. Higher inflation could contribute to the Fed deciding to eventually increase interest rates, which would be “a good thing” for the economy in the long run, Yellen said.

“If we ended up with a slightly higher interest rate environment it would actually be a plus for society’s point of view and the Fed’s point of view,” Yellen told Bloomberg.

(Excerpts from the Virginia Star)