Treasury Secretary Yellen: There is a bit more slack in labor market than previously

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.

This article was written by Greg Michalowski at www.forexlive.com.