US Treasury Secretary Yellen, White House Economic Adviser Bernstein defend US government bonds
|“Treasury securities remain the world's preeminent safe and liquid asset, and that the American economy is fundamentally strong,” said US Treasury Secretary Janet Yellen on late Wednesday while at an Internal Revenue Service contractor office near Washington, per Reuters.
On the same line, White House (WH) Economic Adviser Jared Bernstein also said that the US Treasury debt remains the safest in the world.
It’s worth noting that the policymakers harshly criticized Tuesday’s US rating downgrade by the Fitch Ratings. That said, US Treasury Secretary Yellen termed the assessment as ‘flawed’ while the WH Economic Adviser Bernstein said it is problematic.
Further, Yellen said that the rating downgrade was entirely unwarranted whereas Bernstein conveyed confidence in the US government and Congress that they can avoid default despite the latest rating move flag those fears.
Market reaction
Markets seemed to have taken these comments with a pinch of salt as the US Dollar bulls and the Treasury bond yields retreat from their latest peaks but remain firmer by the end of Wednesday’s North American trading.
Also read: Forex Today: Dollar stays firm as upbeat US jobs data offsets credit downgrade
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