Treasury Secretary Janet Yellen (and ex Fed Chairman) is speaking on economy saying:
- 1st quarter GDP was not a good read on the strength of the economy
- Consumer spending, business investment remains strong
- America is outperforming other countries
- Credit quality remains excellent, banks are well capitalized
- Inflation is too high, necessary to bring it down
- Escalation in commodity prices it can have told globally
- We could see slower growth and downturn in Europe, some of that could spill over into the US
- Certain the Fed will try to deploy its tools to achieve a soft landing
- sees danger in outlook, but thinks a soft landing as possible
- US government spending it did feed demand
- Thinks US government spending was justified at the time
- Forecasts were really quite dire when Biden took office
- Inflation up globally, even in economies where there was less stimulus
- Covid lockdowns in China threatens to prolong supply chain disruptions
- Necessary to see energy supplies increase
- Use moved to cut off Russian oil imports could drive oil prices higher
- It's important that Europe will rid itself of dependence on Russian as a source of energy supplies
- US prepared to respond strongly to purposeful devaluation of currencies
- Believes in market-based value for dollar
- Some of the dollars rise is due to higher US interest rates
- As evaluations are high, huge increase in housing prices
- We don't have the kind of mortgage practices seen before housing crisis
- Worries about commodity prices
The comments are not earth shattering or anything new. The former Fed chair is probably happy she's not in her old seat at the Fed.