US Treasury Secretary Yellen:

  • Says strong US Q4 GDP performance is 'a good thing,' not likely creating an inflationary challenge
  • Q4 GDP data driven by 'strong, healthy spending' and productivity improvements
  • She does not see anything in GDP report that threatens 'soft landing' scenario for US economy
  • Some goods prices are falling and there is continued moderation in wage growth, which is important for controlling prices of services
  • It is unclear if recent productivity gains are temporary, too soon to speculate on impact of artificial intelligence on productivity

Yellen is understating it, that report was awesome. It obliterated even the highest estimate in the Bloomberg survey:

And inflation plummeted (deflator).

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