US Treasury Secretary Yellen: GDP report a good thing, won't create inflationary challenge

<p>US Treasury Secretary Yellen:</p><ul><li>
Says strong US Q4 GDP performance is 'a good thing,' not likely
creating an inflationary challenge</li><li>Q4 GDP data driven
by 'strong, healthy spending' and productivity improvements</li><li>She does not see
anything in GDP report that threatens 'soft landing' scenario for US economy</li><li>Some goods prices
are falling and there is continued moderation in wage growth, which
is important for controlling prices of services</li><li>It is unclear if
recent productivity gains are temporary, too soon to speculate on
impact of artificial intelligence on productivity</li></ul><p>

Yellen is understating it, that report was awesome. It obliterated even the highest estimate in the Bloomberg survey:</p><ul><li><a href="https://www.forexlive.com/news/gdp-durable-good-orders-expected-from-the-us-thursday-25-january-2024-ranges-to-watch-20240125/" target="_blank" rel="follow" data-article-link="true">GDP &amp; Durable good orders expected from the US Thursday, 25 January 2024 – ranges to watch</a></li></ul><p>And inflation plummeted (deflator). </p><p>More here:</p><ul><li><a href="https://www.forexlive.com/news/forexlive-americas-fx-news-wrap-us-gdp-beats-estimates-dollar-climbs-20240125/" target="_blank" rel="follow" data-article-link="true">Forexlive Americas FX news wrap: US GDP beats estimates, dollar climbs</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.