Yellen in the morning “We will raise interest rates against inflation”. In the afternoon “I was wrong” …

5 May 20213 years ago babelfish

Yesterday, Treasury Secretary Janet Yellen, speaking at The Atlantic's “Future Economy Summit” wreaks havoc with her words.

Here is the sentence …

"Interest rates may have to go up a bit to ensure our economy doesn't overheat."

And that didn't help …

"We've gone too far letting long-term problems get worse in our economy"

Are you talking about the Fed-sponsored money supply that widens the inequality gap?

Here is the original video

So Yellen said, papal papal:

that there is inflation because we have tolerated expansive monetary policies put forward by the Fed for too long;
that it is time to start revising interest rates upwards to cool the economy, putting an end to the boom and the period of near-zero dollar rates.

The result of these words was a small stock market drop and a dollar spike. A reaction to be expected, even moderate in the face of the words of a Minister of the Treasury, who in the USA is called "Secretary of the Treasury".

Someone must have given her a pat on the shoulder because, in the evening you were, she backtracked overturning her.

Speaking at the board meeting of the Wall Street Journal CEO , the former Fed chief said he "didn't see [Biden's] bailout package overheating the economy ."

Even on customs duties, Yellen has changed her mind: " Let it be clear that this is not something I am anticipating or recommending ".

Then he concluded by stating that the inflationary flare-up is only " Temporary " and that " The FED has all the tools to cope with the inflationary flare-ups ". End of the confusion after a day of chaos.

So next time it would be best to count to ten before speaking.

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The article La Yellen in the morning “We will raise interest against inflation”. The afternoon "I was wrong" … comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-yellen-la-mattina-alzeremo-gli-interessi-contro-linflazione-il-pomeriggio-mi-sono-sbagliata/ on Wed, 05 May 2021 07:00:47 +0000.