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US Treasury Sec. Yellen: Stronger growth in US to spill over positively for global outlook

US Treasury Secretary Janet Yellen said on Tuesday that the US decided to go big with COVID-19 relief measures given concerns about long-term economic scarring, as reported by Reuters.

Additional takeaways

"Stronger growth in the US will spill over positively for the entire global outlook."

"Expecting pretty rapid recovery, return to full employment next year."

"It is the responsibility of advanced economies to ensure that progress to ending poverty in poor countries is not reversed."

"US understands it must help developing countries meet their climate goals along with development objectives."

"There is no more important economic policy today than ensuring all people receive COVID-19 vaccines."

"One of the lessons of the COVID-19 crisis is that we need to be better prepared, this may not be the last health crisis ever."

"The US has seen that its safety net was not sufficient to protect most vulnerable."

"COVID crisis also revealed weaknesses in global supply chains, must work to shore up the resilience."

"We have more work to do to shore up the resilience of the financial system."

"Some parts of the non-bank financial sector showed stress during the pandemic."

Market reaction

These comments don't seem to be having a significant impact on market sentiment. As of writing, the S&P 500 Index was unchanged on the day at 4,078.

Author

Eren Sengezer

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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