US Treasury Secretary Janet Yellen said on Thursday that a significant share of remaining inflation represents housing costs returning to normal slowly, per Reuters.

Key takeaways

"We are creating jobs at a very rapid pace."

"Unemployment rate has drifted up a little bit, the labor market has become a little less hot, a little more normal."

"Labor market is now resembling pre-pandemic."

"Wages are not a threat to contribute to inflation."

"Substantial lock-in effect is limiting supply of homes on the market."

Market reaction

The US Dollar Index showed no reaction to these comments and was last seen gaining 0.25% on the day at 104.95.