Yellen: Federal Reserve has the tools to deal with inflation

In a CNBC interview, the US Treasury Secretary, Janet Yellen, has said it is important to have a big rescue package and that benefits will far outweigh costs in the longer-run.

key comments

Inflation is a risk, fed has tools to address it.

If the unemployment rate is measured properly it is close to 10%.

Market implications

The comments came after the close, although she has not said anything new in the interview that has not already been priced in. 

Markets are watchful of inflation risks and jobs data which has spurred up some fear in markets forcing investors to take profit on Thursday.