"Yellen Warns of Unlikely Return to Pre-Covid Rates and Regrets Misjudging Inflation"

US Treasury Secretary Janet Yellen stated that it's "unlikely" for market interest rates to return to pre-Covid levels due to inflation and higher yields. The White House's new projections anticipate significantly higher interest rates over the next three years, reflecting current market realities and private sector forecasts. Yellen emphasized the importance of reasonable budget assumptions and hinted at a shift in her own views on the issue. The projections are part of President Joe Biden’s $7.3 trillion fiscal 2025 budget proposal and have sparked a considerable debate among economists.