US Treasury Secretary Yellen: Rise in yields reflects a strong US economy

Matías Salord FXStreet

US Treasury Secretary Janet Yellen, stated on Thursday that she wouldn't be surprised if the economy grows by 2.5% in 2023. Data released earlier showed that during the third quarter, the Gross Domestic Product expanded at an annualized rate of 4.9%, above the 4.2% of market consensus.

During an interview with Bloomberg TV, Yellen said the economy is performing well, with strong consumer spending. However, she acknowledged that many Americans are concerned about the economy, noting that a significant portion of the population has not experienced meaningful income growth.

Regarding yields, Yellen mentioned that the recent surge is not connected to deficits and does not indicate an impending recession. Instead, it reflects the strength of the US economy.
When asked about the fiscal deficit, Yellen expressed that plans should keep the deficit manageable.

Market reaction

Yellen's comments did not trigger a significant market reaction. The US Dollar is trading with mixed performance across the board following US data that included positive growth figures and Jobless Claims. The US Dollar Index (DXY) is up by 0.12%, but it remains far from its daily highs, hovering around 106.65.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

AUD/USD remains above 0.7200 after China's trade data

AUD/USD sits above 0.7200 in the Asian session on Tuesday, near its highest level since May 14. The US Dollar stays under pressure as a rallying Japanese Yen outweighs support from hawkish Fed bets and geopolitical tensions. This, along with firming expectations for another RBA rate hike later this month, acts as a tailwind for the Aussie. However, mixed China trade balance data keep the pair restricted.

USD/JPY recovers to 154.00 amid hawkish BoJ repricing

USD/JPY is recovering from six-month lows of 152.89, retesting 154.00 in European trading on Tuesday. However, the upside attempts appear limited as Japan's upbeat wage growth data and Q2 GDP revision cement bets on a BoJ rate hike next week and continue to boost the Japanese Yen. Meanwhile, US Dollar selling remains unabated despite hawkish Fed expectations and rising geopolitical tensions, lending additional support to the pair.

Gold traders seem hesitant below $4,450 as Fed rate hike bets counter softer USD

Gold retreats to the lower end of its daily range heading into the European session, though it holds above the $4,400 mark amid a softer US Dollar. However, hawkish US Federal Reserve expectations, along with persistent geopolitical uncertainties, offer some support to the safe-haven buck and keep a lid on the non-yielding bullion.

Ripple and Stellar outlook: Hold bullish bias above EMAs as derivatives back upside

Ripple (XRP) and Stellar (XLM) hold above the key support zones on Tuesday, hinting at an upside move. Derivatives metrics further support the recovery, with both altcoins showing positive funding rates and rising long positions. Derivatives data shows a bullish tilt among XRP and XLM traders.

Europe in focus: September 2026

Six major net contributors demanded substantial cuts to the European Commission’s proposed 2028–2034 EU budget. Germany, Denmark, the Netherlands, Austria, Finland and Sweden issued a joint position on 27 August calling for the nearly €2 trillion proposal to be reduced by several hundred billion euros and rejecting additional common EU borrowing.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.