Reuters headlines from Treasury Secretary Yellen

Reuters headlines from Treasury Secretary Yellen_
  • hopefully pandemic will not completely stifle economic activity
  • US stimulus at start of pandemic helped fuel very strong recovery
  • stimulus did contribute somewhat to inflation, but pandemic added factors
  • unclear why labor force participation in the US has declined. Best guess is concerned about virus
  • labor shortage is starting to put upward pressure on wages
  • believes return to normal economy would help alleviate pressures
  • Biden administration does everything we can to coordinate private-sector efforts to mitigate supply chain problems
  • we should be realistically about what can be accomplished by government to reduce inflation
  • Biden working with private sector, but don't want to overpromise
  • working with semiconductor manufacturers, but takes a long time to ramp up production
  • tariffs do contribute to higher prices
  • Some Trump era tariffs create problems without having any real strategic justification
  • Lowering tariffs through exclusion process could be helpful but not a game changer
  • up to Federal Reserve to decide when to raise interest rates
  • does not want to have wage price spiral develop in which inflation comes chronic
  • it is the Fed's job to ensure we don't have wage price spiral in the 1970s

A look at the US stock market in premarket trading shows the

  • Dow industrial average is now up only 120 points,
  • the S&P is near flat and
  • the NASDAQ is down -46 points

Get that grin off your face TS Yellen... ; )