US Treasury Sec Yellen: A strong US economy would prompt rate increases

US Treasury Secretary Janet Yellen, speaking at a Reuters Next event, said on Thursday that a strong US economy, which could likely prompt interest rate increases, is generally good for the world and emerging markets. 

Key takeaways: 

“It's up to the Federal Reserve to decide when to raise interest rates.”

“Don't want to have wage-price spiral develop in which inflation becomes chronic.”

“It's Fed's job to ensure we don't have wage-price spiral seen in the 1970s.”

“Learned while serving as fed chair to avoid surprises for markets on any rate increases.”

“Working with semiconductor manufacturers, but takes a long time to ramp up production.”

“Tariffs do contribute to higher prices.”

“Some Trump-era tariffs create problems without having any 'real strategic justification'.”

“Lowering tariffs through 'exclusion process' could be helpful, but not a 'game-changer.”

“Omicron variant could cause 'significant problems' for the economy, still evaluating that.”

Market Reaction

Market have not reacted to Yellen's commentary.