US Treasury Secretary Yellen: GDP report a good thing, won’t create inflationary challenge

US Treasury Secretary Yellen:

  • Says strong US Q4 GDP performance is ‘a good thing,’ not likely
    creating an inflationary challenge
  • Q4 GDP data driven
    by ‘strong, healthy spending’ and productivity improvements
  • She does not see
    anything in GDP report that threatens ‘soft landing’ scenario for US economy
  • Some goods prices
    are falling and there is continued moderation in wage growth, which
    is important for controlling prices of services
  • It is unclear if
    recent productivity gains are temporary, too soon to speculate on
    impact of artificial intelligence on productivity

Yellen is understating it, that report was awesome. It obliterated even the highest estimate in the Bloomberg survey:

And inflation plummeted (deflator).

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This article was written by Eamonn Sheridan at www.forexlive.com. Source