US Treasury Sec. Yellen: Americans earning $60,000 should get stimulus checks

Anil Panchal FXStreet

US Treasury Secretary Janet Yellen appeared for CNN’s “State of the Union” during Sunday where she rekindled the need of US President Joe Biden’s $1.9 trillion stimulus.

“President (Joe) Biden is certainly willing to work with members of Congress to define what’s fair and he wouldn’t want to see a household making over $300,000 receive these payments,” said the ex-Fed Chair.

Asked about the risk of over-stimulating the economy and generating inflation, Yellen said: “We have good tools to deal with that risk if it materializes,” per Reuters.

Additional key comments…

I'm afraid the job market is stalling.

US job market `in a deep hole.

Spending fueled by Biden plan will create labor demand.

Core market `plumbing' worked well during recent days.

Details still being worked out on stimulus caps.

There’s absolutely no reason why we should suffer through a long slow recovery.

I would expect that if this package is passed that we would get back to full employment next year.

Market implications

While her comments are mostly repeating the Biden administration’s push towards more stimulus and favoring the mood, the outlook over the US employment seems to weigh on the risks. The same could be seen in the week-start drop of AUD/USD from 0.7669 to 0.7659.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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