# Janet Yellen's indicating higher interest rates - bearish signal?

**URL:** <https://tribe.getbaraka.com/t/janet-yellens-indicating-higher-interest-rates-bearish-signal/327>\
**Category:** Investment\
**Tags:** learning\
**Created:** [7 June 2021 10:53 UTC](https://tribe.getbaraka.com/t/janet-yellens-indicating-higher-interest-rates-bearish-signal/327 "2021-06-07T10:53:16Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![ayushkbhatia](https://sea1.discourse-cdn.com/flex019/user_avatar/tribe.getbaraka.com/ayushkbhatia/32/69_2.png) [@ayushkbhatia](https://tribe.getbaraka.com/u/ayushkbhatia)\
**Post date:** [7 June 2021 10:53 UTC](https://tribe.getbaraka.com/t/janet-yellens-indicating-higher-interest-rates-bearish-signal/327/1 "2021-06-07T10:53:16Z")

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Treasury secretary Janet Yellen said that the President’s infrastructure expenditure plans of $400 billion a year does have inflationary undertones - nothing unexpected.

The caveat here is that she went on to say that a “higher-interest-rate” environment would actually be more beneficial to the Fed and the economy.

There is some truth to Yellen’s words - in an overheated economy like this, we should tread carefully, although the million-dollar question remains - how will the markets react to this whisper?

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**Author:** ![Neerab](https://sea1.discourse-cdn.com/flex019/user_avatar/tribe.getbaraka.com/neerab/32/63_2.png) [@Neerab](https://tribe.getbaraka.com/u/Neerab)\
**Post date:** [7 June 2021 11:27 UTC](https://tribe.getbaraka.com/t/janet-yellens-indicating-higher-interest-rates-bearish-signal/327/2 "2021-06-07T11:27:46Z")

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The Fed is also planning to slowly sell the corporate bonds and fixed income instruments it bought last year in its bid to curb the pandemic related economic slowdown. A sell off by the Fed on its own, would cause interest rates to rise. This would increase the cost of debt for most companies. An infrastructure package in a situation like this would help mitigate the impact that the rising interest rate would have on private investments. However, the bears are gonna have a filed day with companies that are not part of the package, that is for sure.