U.S. Treasury Secretary Yellen says President Joe Biden should press ahead with his $4 trillion spending plan, even if they trigger inflation and rising interest rates into next year.

"if our final interest rate environment rises slightly, it's actually a good thing from a social and Fed point of view," Yellen said on Sunday.

The debate over inflation has intensified in recent months, with Yellen and others arguing that the current price rise is due to temporary anomalies caused by the epidemic-such as supply chain bottlenecks and a surge in spending as the economy reopens. But critics say trillions of government aid could cause prices to continue to soar.

Ms Yellen said Mr Biden's rescue plan would increase spending by up to about $400 billion a year, which she thought would not be enough to lead to excessive inflation. Any "surge" in prices caused by the rescue package will subside next year, she said.

"for a decade, we have been struggling with too low inflation and too low interest rates," the former Fed chairman said, adding, "We want them to return to a" normal interest rate environment. "if this helps ease some situations, then it's not a bad thing-it's a good thing."