Yellen Denies Treasury Rate Manipulation Claims

U.S. Treasury Secretary Janet Yellen refuted claims from Republican senators that the Treasury is intentionally issuing short-term bills at higher interest rates to boost the economy before the presidential election. She emphasized that such issuance aligns with historical norms and the Treasury Borrowing Advisory Committee's advice.

U.S. Treasury Secretary Janet Yellen on Tuesday rejected suggestions by Republican senators that the Treasury is deliberately increasing issuance of short-term Treasury bills at higher interest rates to try to stimulate the economy ahead of the November presidential election.

Yellen told a U.S. Senate subcommittee hearing that Treasury's issuance of short term bills is in line with historical norms and the advice of market participants in the Treasury Borrowing Advisory Committee. She added that issuing short-term bills has nothing to do with creating a "sugar high" for the economy.