U.S. Treasury Secretary Yellen says President Joe Biden's $4 trillion spending plan will be good for the United States, even if it leads to higher interest rates.

In an interview with reporters, the former Fed chairman said the president's package would total $400 billion a year. She believes that this level of spending is not enough to cause excessive inflation.

"if we end up with a slight increase in interest rates, it would actually be good for [US] society and the Fed," Ms Yellen said. "

"for a decade, we have been struggling with too low inflation and too low interest rates," she said. " She addedIf the package can help "alleviate the problem, then this is not a bad thing, but a good thing."

She believes that the current price rise is driven by a "temporary anomaly" caused by the novel coronavirus pandemic.