- FinCEN hosted a news conference where Yellen addressed the reporters.
- She expressed optimism about the deal struck between a prominent Republican and a top Democrat leader but remained unsure about averting a federal shutdown, given the looming funding crisis.
- Yellen emphasized the government’s fundamental role in staying operational and the ramifications of a shutdown on America’s economic health.
Details on Yellen’s Speech at FinCEN
Addressing journalists at an engagement at the Financial Crimes Enforcement Network’s (FinCEN) office in suburban Washington, Yellen expressed optimism about the agreement revealed on Sunday by the leader of the House of Representatives, Republican Mike Johnson, and Chuck Schumer, a Democrat and the Senate Majority Leader. However, she remained uncertain whether a shutdown of the federal government could be sidestepped as current funding expires.
The Government’s Responsibility
“Ensuring that the government continues to operate efficiently is a vital obligation of the Congress,” stated Yellen. “United States residents rely heavily on these services, and creating a risk that could hinder our strong economic performance is unnecessary. Therefore, I remain hopeful that a shut down isn’t something we’ll have to deal with.”
Impact on Forex and Trading
The possible shutdown of the federal government can create a ripple effect in the financial sector, affecting forex and trading. Key assets such as American government bonds could be impacted.