She didn’t really say that but she may as well have.
It is to be expected that interest rate differentials will drive capital flows, she says (the US has low, low interest rates). In addition, she says structural budget deficits are a serious problem and will require painful decisions. Following plans to achieve fiscal sustainability will ensure confidence in the dollar, she says.(Unfortunately,there is no plan apparent to the market to do that, nor does there appear to even be a plan for a plan…).
The Fed will not tighten in the next few months, she says and they have not yet decided the sequence of measures for when the time comes, she says. That said, she wants to convey to the market that Yhe Fed has confidence it will do the right thing when it its time to tighten.
EUR/USD is lokced in a tight range between 1.4915 and 30 but very good interest has been seen between those levels. Looks like the bulls and the bears have reached a standoff, for the moment.
