US Treasury Secretary Janet Yellen
Yellen:
- inflation may have peaked
- US economy is being very resilient in the face of a set of shocks
- Will have to put up with high inflation for a while longer
- Knows Federal Reserve will look carefully at the data in responding to inflation
- there is a possibility that imposing import bans on Russian energy could drive price is higher throughout global economy
- we want to be careful that China does not undermine impact of sanctions on Russia
- we would like to see China actively work to resolve Russia – Ukraine crisis
- China continuing to buy coal and oil from Russia is not a violation of sanctions
- I don't expect a recession in the United States
- IMF forecast of 3.7% growth in the US economy is still very solid
Lagarde:
- APP likely to end in early Q3 (that is different than what she said last week after the ECB rate decision - said the APP was likely to and in the 3Q but could be near the beginning or end)
- There is strong chance rates will be raised this year
- Not seeing stagflation
The EURUSD traded to a low of 1.07697. It currently trades at 1.0779. The low price for the week reached 1.07604. The low price from last week reach 1.07568.