U.S. Treasury Sec. Janet Yellen Speaks on Inflation Risks & U.S. Employment Rates
Following President Biden’s $1.9 trillion pandemic relief package being signed into law this past week, U.S. Treasury Secretary, Janet Yellen, has assured that U.S. inflation risks are reasonable and full employment is on track to be achieved by 2022.
Yellen has shared those same views in the past, but said they would only be achievable if President Biden’s stimulus package goes to plan. She also spoke about the possibility of the economy’s recovery and regaining full employment by next year when the pandemic is under control. Support from the stimulus package includes direct payments to eligible individuals, expansions of child tax credits, further funding and testing for vaccine distribution nationwide.
Speaking on inflation risks, Yellen said that they weren’t “significant” but if they continue to materialise that they would be monitoring the situation and are capable of addressing it with the necessary tools. Recognising that a rise for the economy equals a price increase for consumers, Yellen stated that increases would not be extreme and that they are manageable.
Although U.S. unemployment rates continue to climb, which is understandable when considering the amount of individuals who have had to drop out of labor jobs in the last 12 months, new job opportunities are gradually increasing. In February, 379,000 job roles were added by employers (March NFP). Applications for jobless benefits were lower than the forecasted value last week, dropping to values not seen since November 2020.
Keeping a close eye on NFP numbers & the tone towards inflation will be critical in predicting USD trends in the coming months.