US Treasury Secretary Yellen: Rise in yields reflects a strong US economy

US Treasury Secretary Janet Yellen, stated on Thursday that she wouldn't be surprised if the economy grows by 2.5% in 2023. Data released earlier showed that during the third quarter, the Gross Domestic Product expanded at an annualized rate of 4.9%, above the 4.2% of market consensus. 

During an interview with Bloomberg TV, Yellen said the economy is performing well, with strong consumer spending. However, she acknowledged that many Americans are concerned about the economy, noting that a significant portion of the population has not experienced meaningful income growth.

Regarding yields, Yellen mentioned that the recent surge is not connected to deficits and does not indicate an impending recession. Instead, it reflects the strength of the US economy.
When asked about the fiscal deficit, Yellen expressed that plans should keep the deficit manageable. 

Market reaction

Yellen's comments did not trigger a significant market reaction. The US Dollar is trading with mixed performance across the board following US data that included positive growth figures and Jobless Claims. The US Dollar Index (DXY) is up by 0.12%, but it remains far from its daily highs, hovering around 106.65.