US Treasury Secretary Yellen in a interview with Reuters says:

  • GDP data shows straight in consumer investment spending.
  • US economy shows robust growth, firing on all cylinders
  • There could be revisions to GDP data.
  • I still see in underlying core drivers of economic activity considerable strength.
  • We are on downward path for inflation.
  • Rents have stabilized, but a lot of people still experiencing the upward adjustment to higher levels.
  • I have no doubt that housing's contribution to inflation will be coming down this year.
  • Not seen that wage pressures are a source of inflation
  • Certainly don't see the economy as overheated.
  • We've got a good strong US economy, lifting growth all around the world.
  • Fed wants to see additional evidence of a sustainable decline in inflation.
  • Methods are concerned with high cost-of-living.
  • Biden's top priority is to address high cost of healthcare, bring down drug prices.
  • Feds first priority is to set monetary policy to be consistent with price stability
  • Dollar has been strong, there are divergences with other countries.
  • Key factor in dollars valuation is strength in the US economy, level of rates.
  • My position has been that currency intervention is acceptable only in very rare and exceptional circumstances.
  • We do have to have sustainable fiscal path
  • We have enacted some deficit reduction despite divisions in Congress.
  • Consumer spending in China is incredibly low.
  • China exporting its way to full employment is not acceptable to the rest of the world.
  • US experience China shock after China's export surged to the US following its admittance to WTO
  • China shock was a huge loss of manufacturing jobs in parts of the US that have not recovered.
  • Part of the US have really been left behind, free trade has to be something that benefits people throughout the country.
  • We would be prepared to use authority to sanction Chinese banks if necessary.

With the Fed in the quiet period of their interest-rate decision on May 1, the ex-chair of the Federal Reserve will have to do. However, her hat as change to one of "Independent" Fed official to a political appointment from the Biden administration on