Yellen: We haven’t seen too much progress on inflation in the the past couple of months

Comments from the outgoing US Treasury Secretary:

• Labor market has cooled but it’s in a good state
• The main factor in inflation was shortages
• Spending on covid may have added a little bit to inflation
• Term premium in fixed income looks to have gone up, has begun to normalize
• Fiscal policy needs to be put on a sustainable course
• Recent data suggests the path of interest rates may be higher than people expected
• Expiring tax cuts need to be handled in a responsible way
• If IRS funding is repealed, it could be a $800 billion hit to deficit

I don’t see anything groundbreaking here or notable. Mostly stating the obvious, which Yellen made a career out of doing.

This article was written by Adam Button at www.forexlive.com.