US Treasury Sec. Yellen: US inflation risk remains small, ‘manageable’ – Bloomberg

US Treasury Secretary Janet Yellen crossed wires, via Bloomberg, while speaking on ABC’s “This Week” on Sunday. The policymaker again rejected the fears of reflation, gained momentum on US President Joe Biden’s $1.9 trillion stimulus.

“Is there a risk of inflation? I think there’s a small risk and I think it’s manageable,” said Treasury Secretary Yellen, per the news.

The ex-Fed Boss also said, “I don’t think it’s a significant risk,” while stating “And if it materializes, we’ll certainly monitor for it but we have tools to address it.”

“I’m hopeful that, if we defeat the pandemic, that we can have the economy back near full employment next year,” Yellen’s additional remarks mentioned.

FX implications

Although the US diplomat reiterated her previous comments and the market is yet to respond the same, this should pave the way for this week’s Fed meeting and may placate US bond bears at the week’s start.

Read: AUD/USD: Looks to regain 0.7800 ahead of RBA’s Lowe, China data dump