Treasury Secretary Janet Yellen (and ex Fed Chairman) is speaking on economy saying:
- 1st quarter GDP was not a good read on the strength of the economy
- Consumer spending, business investment remains strong
- America is outperforming other countries
- Credit quality remains excellent, banks are well capitalized
- Inflation is too high, necessary to bring it down
- Escalation in commodity prices it can have told globally
- We could see slower growth and downturn in Europe, some of that could spill over into the US
- Certain the Fed will try to deploy its tools to achieve a soft landing
- sees danger in outlook, but thinks a soft landing as possible
- US government spending it did feed demand
- Thinks US government spending was justified at the time
- Forecasts were really quite dire when Biden took office
- Inflation up globally, even in economies where there was less stimulus
- Covid lockdowns in China threatens to prolong supply chain disruptions
- Necessary to see energy supplies increase
- Use moved to cut off Russian oil imports could drive oil prices higher
- It’s important that Europe will rid itself of dependence on Russian as a source of energy supplies
- US prepared to respond strongly to purposeful devaluation of currencies
- Believes in market-based value for dollar
- Some of the dollars rise is due to higher US interest rates
- As evaluations are high, huge increase in housing prices
- We don’t have the kind of mortgage practices seen before housing crisis
- Worries about commodity prices
The comments are not earth shattering or anything new. The former Fed chair is probably happy she’s not in her old seat at the Fed.
This article was originally published by Forexlive.com. Read the original article here.