Here's what Janet Yellen will say today

19.01.2021 11:54|Forex conotoxia.com

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Excerpts from Janet Yellen's appearance before the Senate Finance Committee have been made public. The former Fed Chair's hearing will begin at 4 p.m. today, and the market is waiting for confirmation of the information already gathered.

Yellen, the nominee for U.S. Treasury Secretary, is expected to say that the U.S. economy was suffering from rising inequality long before the pandemic. According to quotes made available by Bloomberg agency, Yellen is expected to say that Americans lived in a K-shaped economy where the rich got even richer while working families fell further and further behind, which is especially noticeable among African-American or Latin-American families, according to the text of Janet Yellen's speech.

One of the main points of the speech is expected to be a reference to the aid package prepared by Joe Biden. Neither the President-elect nor I propose this aid package without acknowledging the country's debt burden. But right now, with interest rates at historic lows, the smartest thing we can do is to act big,Yellen is expected to argue. I believe that in the long run the benefits will far outweigh the costs, especially if we care about helping people who have been struggling for a very long time, Bloomberg quotes Yellen as saying.

The former Fed Chair is expected to add that once the pandemic is over, the challenge will be to rebuild the U.S. economy so that it creates more prosperity for more people and ensures American workers can compete. Yellen's comments are expected to cover topics ranging from monetary policy to taxes, and will also give lawmakers a chance to review Joe Biden's $1.9 trillion rescue plan.

Moreover, Janet Yellen is also expected to touch on currency issues, including perhaps addressing the U.S. dollar and its strength. It is expected that unlike the Donald Trump administration, which has talked about a strong dollar as a sign of the strength of the US economy, Yellen may take a different stance without favoring a strong USD.

The hearing will begin at 10 a.m. E.T., or 4 p.m. CET.


Daniel Kostecki, Chief Analyst Conotoxia Ltd.

Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.

76.44% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.


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