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during an interview Bloomberg NewsU.S. Treasury Secretary Janet Yellen stressed the importance of revenue-raising measures, noting that as the longer-term outlook for interest rates rises, it becomes challenging to control the country’s borrowing needs.
Her comments continued for months In its latest budget proposal, the Biden administration projects the 10-year Treasury yield will be 3.7% in the early 2030s and 2.8% in the early 2030s. proposal three years ago.
“We have raised our interest rate forecasts,” Yellen said on Friday when attending a meeting of G7 finance ministers and central bank governors in Tresa, Italy.
“That does have an impact. It makes it more challenging to control the deficit and interest payments,” she added.
“We’re going to open tax negotiations,” Yellen said, referring to the Biden administration’s intention to negotiate some Trump-era tax cuts that are scheduled to expire at the end of 2025 without legislative changes.
