Assuming Janet and Jay handle the rate cycle smoothly

Treasury Secretary Yellen says the stimulus bill will get the economy back on track 'quickly,' with near full employment next year

What she means by full employment is the point where Treasury needs to borrow at the shortest end to keep interest costs down.

And this:

Treasury Secretary Janet Yellen said Sunday that the Biden administration hasn’t decided whether to pursue a wealth tax, but will likely issue proposals to address the swelling federal budget deficit.

From Mish. But did she actually say swelling deficit?  This sounds like a preparation for rate cycle time. But she was likely more non-committal then Mish implies.  One of the biggest tax battle with Texas stopping oil taxes, California losing all its tax initiatives ave one small one, New York losing the home owner interest deduction limit, and Chicago losing its tax initiative.

Since the Californians cheated on the revenue sharing, the next state and local bailout will be a tough negotiation. A prolonged tax battle will generate a rte cycle sooner than Janet is ready for.