Yellen Coddles Up to Powell on Rising Long-Term Yields as a Welcome Sign of Recovery. Wall Street Crybabies Not Amused | Wolf Street

It seems to be a rare sight that a Treasury Secretary and a Fed Chair color-coordinate their comments about rising long-term yields. On Friday, Treasury Secretary Janet Yellen in an interview on PBS NewsHour echoed what Fed Chair Jerome Powell had said on Thursday in an interview with the Wall Street Journal.

When Yellen was asked about the rising long-term yields that the crybabies on Wall Street are getting so nervous about, Yellen said in her quiet manner: Long term interest rates have gone up some, but mainly I think because market participants are seeing a stronger recovery, as we have success with getting people vaccinated and a strong fiscal package that s going to get people back to work.

Rising interest rates don t concern you? she was then asked.

I think they re a sign that the economy is getting back on track, and market participants see that, and they expect a stronger economy, Yellen said. And instead of inflation lingering below levels that are desirable for years on end, they re beginning to see inflation get back to a normal range of around 2%. And inflation may rise more than that, but it s going to be transitory, she said.

via wolfstreet.com