{"id":98619,"date":"2024-03-16T00:14:35","date_gmt":"2024-03-15T20:14:35","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=98619"},"modified":"2024-03-16T00:16:50","modified_gmt":"2024-03-15T20:16:50","slug":"98619-2","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/98619-2\/03\/16\/market-updates\/","title":{"rendered":"Why this week\u2019s statements by Janet Yellen on inflation matter"},"content":{"rendered":"\n<p>This week\u2019s statements by Treasury Secretary Janet Yellen hold immense importance due to their impact on the US economy, financial markets, and public perception. Let\u2019s dissect the context and delve deeper into why her words matter:<br><br><strong>Headline Inflation Trends<br><\/strong><br>In February, headline inflation fell to 3.2 percent year-over-year, a substantial improvement from its peak of 9.1 percent in June 2022. However, this rate is still higher than the Federal Reserve\u2019s mandate to keep price increases within 2 percent annually.<br><br><strong>Actions By Fed Chair Jerome Powell\u2019 Team<br><\/strong><br>Jerome Powell and the central bank responded to inflation by raising interest rates from near-zero in March 2022 to a range of 5.25 percent to 5.5 percent. Their goal was to curb inflation by cooling demand and preventing excessive price rises.<br><br><strong>Rare Soft Landing<br><\/strong><br>Initially, economists feared that rate hikes could push the U.S. economy into a recession. However, recent developments suggest a potential \u201csoft landing\u201d, a controlled slowdown of the economy to reduce high prices without triggering a recession.<br>Achieving this delicate balance is challenging, especially given the stickiness of inflation.<br><br><strong>Yellen Still Cautiously Optimistic<br><\/strong><br>Janet Yellen, a former Fed chair, remains optimistic about the overall downward trend in price pressures. She acknowledges that the path won\u2019t be entirely smooth month to month, but the favorable trend is evident1.<br>\u201cTransitory\u201d Inflation Statement:<br><br>Yellen also expressed regret for characterizing inflation in 2021 as \u201ctransitory.\u201d This term initially described pandemic-induced price surges as temporary.<br><br>However, it may have misled people, as it typically implies a short duration of a few weeks or months. Yellen has previously acknowledged the limitations of using this term.<br><br>Yellen\u2019s statements provide crucial insights into the ongoing battle with inflation, the delicate balance between economic growth and price stability, and the challenges faced by policymakers. Investors, businesses, and households closely monitor her words for clues about future monetary policy decisions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This week\u2019s statements by Treasury Secretary Janet Yellen hold immense importance due to their impact on the US economy, financial markets, and public perception. Let\u2019s dissect the context and delve deeper into why her words matter:Headline Inflation TrendsIn February, headline inflation fell to 3.2 percent year-over-year, a substantial improvement from its peak of 9.1 percent &hellip;<\/p>\n","protected":false},"author":13,"featured_media":77037,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[6885,6987,9800,7485],"class_list":["post-98619","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates","tag-fed","tag-inflation","tag-soft-landing","tag-yellen"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/98619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=98619"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/98619\/revisions"}],"predecessor-version":[{"id":98630,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/98619\/revisions\/98630"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/77037"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=98619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=98619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=98619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}