US Inflation Remains Elevated As US GDP Price Index Showed

US Treasury Secretary Yellen Speech Key Points

1. GDP data shows strength in consumer investment spending, indicating robust growth across the US economy.
2. Yellen acknowledges the possibility of revisions to GDP data but sees considerable strength in the underlying core drivers of economic activity.
3. She believes the US economy is on a downward path for inflation, noting stabilization in rents but acknowledges that some people are still experiencing upward adjustments in housing costs.
4. Yellen does not view wage pressures as a significant source of inflation and does not see the economy as overheated.
5. She emphasizes the importance of setting monetary policy to be consistent with price stability, with the Fed prioritizing evidence of a sustainable decline in inflation.
6. Yellen highlights concerns about the high cost of living and identifies healthcare costs and drug prices as top priorities for the Biden administration.
7. Regarding the US dollar, Yellen notes its strength and attributes it to the strength of the US economy and interest rate levels.
8. She expresses cautiousness about currency intervention, stating it should only occur in rare and exceptional circumstances.
9. Yellen stresses the importance of a sustainable fiscal path and mentions enacted deficit reduction measures despite divisions in Congress.
10. Regarding China, Yellen criticizes its low consumer spending and its reliance on exports for full employment, highlighting the negative impact on manufacturing jobs in the US.
11. She acknowledges that some parts of the US have been left behind by free trade and emphasizes the need for trade policies that benefit all regions of the country.
12. Yellen indicates a willingness to sanction Chinese banks if necessary, signaling a firm stance on addressing issues related to China’s economic practices.