- Interest rates may have to rise "a little bit to make sure our economy doesn't overheat," Treasury Secretary Janet Yellen said at an event recorded yesterday.
- The effect of fiscal policy on monetary policy "could cause some very modest increases in interest rates... these are investments an economy needs to be competitive and I think our economy will grow faster" as a result, she said as part of The Atlantic's Future Economy Summit.
- Since her remarks, all three major U.S. stock averages have increased their declines; the yield on the 10-year Treasury falls 2 basis points to 1.58%.
- Update at 1:11 PM ET: Yellen will join the White House press briefing on Friday, White House Press Secretary Jen Psaki told reporters today.
- Yellen's comments on rates rising contrast with Federal Reserve Chairman Jerome Powell's insistence that the central bank will be patient and isn't "thinking about thinking about" raising rates until there's "substantial progress" in meeting its goals of full employment and inflation exceeding 2%.