The Fed rate cut is a very positive sign for the economy

US Treasury Secretary Janet Yellen said on Friday that the US Federal Reserve’s (Fed) interest rate cut is a very positive sign for the US economy.

Key quotes

It reflects confidence on the part of the Fed that inflation has come down a lot and is on the way back to the two percent target, and that the risks to inflation have indeed receded significantly.

At the same time, we have a labor market that remains strong.

Market reaction

The US Dollar Index showed no reaction to these comments and was last seen gaining 0.03% on the day at 100.67.