U.S. Treasury Secretary Praises Yellen for Dropping Forward Guidance, Reiterates Dollar's Dominance

BlockBeats News, June 24th, U.S. Treasury Secretary Yellen praised Federal Reserve Chair Powell's elimination of forward guidance, while also stating that no one should make dot plot predictions. On the economic front, she expects real wage growth to return to the pace seen before April, and foresees the economy picking up speed for the remainder of the year without stoking inflation. She emphasized the importance of the U.S. dollar's reserve status. She believes that after the Ukraine situation is resolved, Russia will seek to return to the dollar system, while the new Venezuela is moving back towards that system.

During a period of rate cuts, the dollar can still remain strong, and the U.S. is willing to take the necessary steps to keep the dollar robust. Regarding the Iran issue, Yellen stated that the U.S. Treasury will oversee the distribution of Iran's funds, which will initially flow through Qatar, with a significant portion earmarked for purchasing U.S. goods and medicines regulated by the Treasury, emphasizing that any funds received by Iran should belong to the Iranian people. (FXStreet)