US Treasury Secretary Yellen: I expect the economy to slow

Anil Panchal FXStreet

“A recession is not at all inevitable,” said US Treasury Secretary Janet Yellen during an interview with ABC News, per Reuters.

The news also adds, “Some tariffs on China inherited from the administration of former President Donald Trump made ‘no strategic sense’ and added that President Joe Biden was reviewing them as a way to bring down inflation”.

Additional quotes

Consumer spending remains strong

Labor market is very strong

Inflation is unacceptably high, partly due to Russia's war with Ukraine.

Inflation causes are global, not local; those factors are unlikely to diminish immediately.

Pace of inflation likely to come down in months ahead.

Gas tax holiday is an idea certainly worth considering.

Biden reviewing tariff policy on China.

Some China tariffs inherited from the trump administration ‘serve no strategic purpose’.

Market reaction

Given the weekend news, the US dollar is yet to react to Yellen’s comments despite inflating recession fears, which in turn weigh on the EUR/USD prices.

Also read: EUR/USD stays on the bear’s radar around 1.0500, ECB’s Lagarde, Fed’s Powell eyed

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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