U.S. Treasury Secretary Janet Yellen stressed the importance of increasing fiscal revenue and expected the ratio of interest payments to GDP to remain stable at 1.3% over the next decade.

According to ChainCatcher, U.S. Treasury Secretary Yellen said that the prospect of interest rates remaining high in the long run makes it more difficult to control U.S. borrowing demand, highlighting the importance of focusing on increasing fiscal revenue in budget negotiations with Republican lawmakers.

"We have raised our interest rate expectations and that does have an impact. It makes it more challenging to keep deficits and interest payments under control," Yellen said, reiterating the emphasis on the ratio of inflation-adjusted interest payments to GDP.

The rate has risen over the past year, but the White House expects it to stabilize at around 1.3% over the next decade. “I don’t have a hard and fast rule, but I don’t want to see it go above 2%,” she said, her most explicit comments yet on the metric.