US Treasury Secretary Janet Yellen said on Monday that she doesn't think that the US economy is overheating, as reported by Reuters.

Yellen added that the labour force participation in the US has declined and noted they jobs are still 5 million below pre-pandemic levels.

Regarding the inflation outlook, "the US inflation is higher than in recent years but it's pandemic-related," she argued. "I believe inflationary pressures will ease, we do not have an economy overheating in the longer sense."

Market reaction

These comments don't seem to be having a noticeable impact on the dollar's performance against its rivals. As of writing, the US Dollar Index was down 0.07% on the day at 94.07.