Yellen: We Can Likely Be Fiscally Sustainable with 'Higher Ratio of Debt to GDP'

Yellen: We Can Likely Be Fiscally Sustainable with ‘Higher Ratio of Debt to GDP’


During an interview with Bloomberg on Monday, Treasury Secretary Janet Yellen stated that because interest rates are lower than they were in prior decades even with rate hikes, “we can probably manage and have a fiscally sustainable path with [a] somewhat higher ratio of debt to GDP.”

Yellen said that President Joe Biden’s proposed budget “would hold [what I see as] the key metric that summarizes the burden of deficits as being its interest cost, and the President’s plan would hold interest costs at historical levels and not allow them to rise above that.”

Bloomberg host and Chief Political Correspondent Annmarie Hordern then asked, “The federal deficit, though, now, is at a level we really don’t see outside of recessions. Is anyone in Washington seriously

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