Treasury Secretary Yellen on Bloomberg says:
- Pres. Bidens #1 priority is to bring down inflation.
- We do not wish to disengage with China economically but there should be a level playing field
- Any action should be targeted and not broadbased.
- Hopefully we will not see a significant Chinese response but it is always a possibility
- Tax revenues should be used to lower the deficit
- interest rates aregenerally lower than they have been.
- Higher interest rates complicate fiscal challenges.
The US CPI data will be released on Wednesday at 8:30 AM ET.
Looking at the chart below, the total CPI and the Core CPI have moves lower since peaking near 9% (for headline). However, both measures have stalled near 3%. The Fed targets 2%.
This article was written by Greg Michalowski at www.forexlive.com.
