US Treasury Sec. Yellen: Confident 'at this point' that US recovery remains strong

Anil Panchal FXStreet

“Failure to deal with debt limit would 'eviscerate' us economic recovery,” said US Treasury Secretary Janet Yellen during her Prepared remarks to Senate banking committee testimony, per Reuters.

“Cannot overstate importance for congress to deal with us debt limit,” adds Treasury Secretary Yellen.

"She also called on Congress to pass President Joe Biden's $1.75 trillion social and climate spending bill, saying it would end the "childcare crisis" and let parents return to work," per Reuters.

Additional comments

Failure to deal with debt limit would 'eviscerate' US economic recovery.

The recovery cannot be detached from progress against covid.

It is critical for Congress to address the US debt limit.

FX reaction

Given the latest recovery in market sentiment, backed by easing fears over the South African variant of the coronavirus, dubbed as Omicron, Yellen’s comments seem neutral and were reacted with little action.

Read: Fed's powell: Inflation will linger well into next year

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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