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.

EUR/USD recovers above 1.1600 as focus shifts to US data

EUR/USD stages a modest rebound and trades in positive territory above 1.1600 in the European session on Wednesday. Improving risk sentiment makes it difficult for the US Dollar to preserve its strength and helps the pair edge higher as focus shifts to key US data releases.

GBP/USD climbs above 1.3350 on improving risk mood

GBP/USD gains traction and advances toward 1.3400 on Wednesday. Although there are no headlines pointing to a de-escalation in the Middle East conflict, the modest recovery seen in US stock index futures limit the USD's gains and help the pair hold its ground.

Gold rebounds toward $5,200 as USD retreats

Gold maintains its offered tone through European session on Wednesday and climbs to the $5,200 region. The downward correction seen in the US Dollar and the ongoing crsis in the Middle East seem to be allowing XAU/USD to preserve its recovery momentum.

ADP Employment Report set to signal stronger February jobs growth, little effect on Fed outlook

The Automatic Data Processing (ADP) Research Institute will release its monthly report on private-sector job creation for February on Wednesday. The so-called ADP Employment Change report is expected to show that the United States private sector added 50K new positions in the month, following the 22K gained in January.

Asian stocks fall as South Korea’s KOSPI slumps over 10%

Asian equities drop on Middle East tensions; the MSCI Asia Pacific Index falls up to 4%. South Korea’s KOSPI fell 10.71% near 5,170, with the Korean Won weakened past 1,500 per dollar.

Solana Price Forecast: SOL consolidation near resistance as ETF inflows offer mild support

Solana price is facing slight rejection as it approaches the upper boundary of the consolidation range at around $88 on Wednesday. Institutional demand is strengthening as spot Exchange Traded Funds recorded two consecutive inflows so far this week.