The former Fed chair and current Treasury Secretary Janet Yellen is speaking on CNBC and says:
- Banking system is well-capitalized.
- A good deal of thought is going into how to shore up liquidity, access to Fed's discount window.
- US labor market, inflation suggests were on a path to a soft landing.
- There is a bit more slack in a labor market than previously
- Appears to be an expectation among Fed that rates will come down further
- Over time if we stay on that path rates will decline to neutral
- It will be necessary to get US deficits down in order to keep the interest costs manageable
- The last mile of inflation is housing.
- Looking back the largest single risk was unemployment would go higher, and into place stimulus measures.
- Inflation is now down considerable, and real wages adjusted for inflation are starting to rise again
- Inflation remains top Biden administration priority
- Ties with China have gone closer
- We have found constructive ways to discuss differences.
- US / China cooperating in necessary areas
- The value of the USD should be determined by the markets.
