US Treasury Sec. Yellen: Inflation May Fall Near 2% by Mid-2026; 2025 GDP Likely ~3%
U.S. Treasury Secretary Janet Yellen said inflation could decline to around 2% by mid-2026 and reiterated that U.S. GDP growth for 2025 is very likely to reach about 3%. Her comments focus on macroeconomic outlook rather than policy changes. The brief report noted these projections in the context of broader market monitoring; no new fiscal measures or guidance for monetary policy were announced. The statement is aimed at setting expectations for inflation normalization and continued economic expansion into 2025, which may influence investor and trader sentiment across asset classes.
Neutral
Yellen’s comments are macroeconomic forecasts rather than immediate policy changes. Expectations that inflation could normalize by mid-2026 and that GDP may grow around 3% in 2025 can be supportive for risk assets over the medium term, since lower inflation reduces recession risk and may ease future rate-hike pressure. However, absent concrete fiscal or monetary policy moves, immediate crypto-market reaction is likely muted. Historically, similar forward-looking positive growth and disinflation projections tend to produce a cautiously bullish backdrop — higher risk appetite over months — but short-term volatility around macro releases can remain. Traders should watch follow-up data (CPI, PCE, GDP prints) and Fed communications: if incoming data confirms disinflation, bullish pressure could build; if inflation proves stickier, downside volatility could follow. Key trade impacts: reduced tail-risk premium for risk assets (potentially supportive for large-cap crypto like BTC/ETH), but no direct catalyst for strong, immediate rallies.