US Treasury Secretary Yellen Highlights Importance of Increasing Fiscal Revenue Amid High Interest Rates

According to Odaily, US Treasury Secretary Janet Yellen has expressed concerns over the long-term prospects of maintaining high interest rates, which makes controlling the US borrowing demand more challenging. This highlights the importance of increasing fiscal revenue in budget negotiations with Republican members. Yellen stated, 'We have already raised interest rate expectations, which indeed has an impact. This makes it more challenging to keep the deficit and interest expenditure under control.' She reiterated the importance of the ratio of inflation-adjusted interest payments to GDP. This ratio has risen over the past year, but the White House expects it to stabilize at around 1.3% over the next decade. Yellen did not set a hard rule, but she expressed her desire not to see it exceed 2%. This is her most explicit comment on this indicator to date. The Treasury Secretary's comments underscore the ongoing challenges facing the US economy amid high interest rates.