Yellen says higher Treasury yields signal recovery, not inflation

FILE PHOTO: Federal Reserve Chairman Janet Yellen speaks during a news conference after a two-day Federal Open Markets Committee (FOMC) policy meeting, in Washington, U.S., September 20, 2017. REUTERS/Joshua Roberts

WASHINGTON (Reuters) - U.S. Treasury Secretary Janet Yellen on Friday said higher long-term Treasury debt yields were a sign market participants were anticipating a stronger recovery, not of increased inflation concerns.

“I don’t see that the markets are expecting inflation to rise above the 2% inflation objective that the Fed has as an average inflation rate over the longer run,” Yellen said in a PBS Newshour interview.

She added the United States needs faster job growth than seen during February, but can reach full employment by next year with President Joe Biden’s $1.9 trillion stimulus plan in place.

Reporting by David Lawder; Editing by Chris Reese