Treasury secretary minimizes risk of inflation caused by Covid relief package

[DonViejo]

Janet Yellen said the greater risk was not strengthening the economy as it recovers from the impact of the pandemic.

By DAVID COHEN

03/14/2021 11:09 AM EDT

Treasury Secretary Janet Yellen on Sunday defended the recently enacted Covid relief package, saying the benefits for the economy far outweigh any concerns that the burst of government spending could lead to inflation.

Speaking on ABC's "This Week," Yellen said, "We need to defeat the pandemic. This package really does that."

President Joe Biden signed the $1.9 trillion relief package into law Thursday. Some economists, including former Treasury Secretary Larry Summers, have raised concerns the measure could lead to rising prices in coming months.

Yellen said the greater risk was in not bolstering the economy — saying the federal government needed to assist people who are out of work, who are facing eviction or foreclosure, or who simply don't have enough food to eat.

more
https://www.politico.com/news/2021/03/14/treasury-yellen-inflation-risk-covid-475847

[Turbineguy]

1. The tax cuts for the rich didn't seem to do it either.

[roamer65]

2. Inflation isn't a huge risk until the velocity of money pace quickens.

It’s near an all time low right now.

Summers is a fucking idiot.