US Treasury Secretary Yellen in a interview with Reuters says:
GDP data shows straight in consumer investment spending.US economy shows robust growth, firing on all cylindersThere could be revisions to GDP data.I still see in underlying core drivers of economic activity considerable strength.We are on downward path for inflation.Rents have stabilized, but a lot of people still experiencing the upward adjustment to higher levels.I have no doubt that housing’s contribution to inflation will be coming down this year.Not seen that wage pressures are a source of inflationCertainly don’t see the economy as overheated.We’ve got a good strong US economy, lifting growth all around the world.Fed wants to see additional evidence of a sustainable decline in inflation.Methods are concerned with high cost-of-living.Biden’s top priority is to address high cost of healthcare, bring down drug prices.Feds first priority is to set monetary policy to be consistent with price stabilityDollar has been strong, there are divergences with other countries.Key factor in dollars valuation is strength in the US economy, level of rates.My position has been that currency intervention is acceptable only in very rare and exceptional circumstances.We do have to have sustainable fiscal pathWe have enacted some deficit reduction despite divisions in Congress.
With the Fed in the quiet period of their interest-rate decision on May 1, the ex-chair of the Federal Reserve will have to do. However, her hat as change to one of “Independent” Fed official to a political appointment from the Biden administration on
This article was written by Greg Michalowski at www.forexlive.com.