The former Fed chair and current Treasury Secretary Janet Yellen is speaking on CNBC and says:
Banking system is well-capitalized.A good deal of thought is going into how to shore up liquidity, access to Fed’s discount window. US labor market, inflation suggests were on a path to a soft landing.There is a bit more slack in a labor market than previouslyAppears to be an expectation among Fed that rates will come down furtherOver time if we stay on that path rates will decline to neutralIt will be necessary to get US deficits down in order to keep the interest costs manageableThe last mile of inflation is housing.Looking back the largest single risk was unemployment would go higher, and into place stimulus measures.Inflation is now down considerable, and real wages adjusted for inflation are starting to rise againInflation remains top Biden administration priorityTies with China have gone closerWe have found constructive ways to discuss differences.US / China cooperating in necessary areasThe value of the USD should be determined by the markets.
This article was written by Greg Michalowski at www.forexlive.com.
