Yellen warns of recession risk amid Fed’s hawkish stance

“As the Fed tightens policy, a recession remains a risk,” noted US Treasury Secretary Janet Yellen late Thursday. The policymaker also added, “It is not appropriate to debate the 2% inflation target at this time.”

US Treasury Secretary Yellen also said that to ease Consumer Price Index (CPI), consumer spending may need to slow. Yellen’s comments fail to move a needle in the markets amid the usual inactive hours of early Asian session on Friday.

However, the support for the recession woes can add strength to the US Dollar and may exert downside pressure on the EUR/USD pair, while also allowing the Gold bears to occupy the driver’s seat.