Gold Falls After Yellen Says Inflation May Rise

By Saikat Chatterjee

By Saikat Chatterjee

Despite these comments, Trump criticized Yellen on the campaign trail, saying that her leading the Fed to keep interest rates low helped the Obama administration.

Facing sometimes tough questions from legislators, Yellen presented the Fed's required semi-annual report to Congress - possibly for the last time if President Donald Trump decides not to reappoint her for a second term at the helm of the USA central bank. The stock climbed $1.21, or 5.6 percent, to $22.78. Later, when asked what she would say if Mr. Trump offered her another term, she said, "It is certainly something that I would discuss with the president, obviously". T. Rowe Price Group added $3.61, or 4.8 percent, to $79.19.

Gold prices turned lower Thursday, after Federal Reserve Chairwoman Janet Yellen said she believed a recent downturn in inflation won't last. Japan will release an Industrial Production report early on Friday. Productivity growth is "very hard to move", and a government policy that boosted it just a few tenths of a percent would be a "very good payoff", she said.

"Many individuals with less education are finding it hard to be placed in jobs that are middle income jobs", Yellen said, a problem that "intensified during the recession". "We have greatly increased our monitoring of the financial system for a broader range of risks", she said in response to a question from Senator Sherrod Brown.

More than 33,000 people died in 2015 from an overdose of opiates, including 20,000 from prescription drug overdoses, according to the latest figures from the Centers for Disease Control.

United States shale oil production also has risen sharply.

"Appropriately designed tax reform could have favorable effect on productivity".

She said that she agreed with "a lot of things in the Treasury report" that are similar to Fed efforts to tailor regulations so they are not so burdensome for smaller banks.

With U.S. economy growing at a steady pace, Yellen's Fed is gradually pulling back from crisis-era stimulus. Exports rose 11.3 percent to $196.6 billion in June, up from May's 8.7 percent rate, and imports gained 17.2 percent to $153.8 billion, up from the previous month's 14.8 percent growth.

"I regard the risk as being two-sided with respect to inflation".

Real estate investment trusts and other high-dividend paying stocks benefited from rising bond prices, which pulled bond yields lower. The Canadian dollar strengthened against its US counterpart on Thursday as recovery in oil prices strengthened Canadian dollar further but held on to most of its sharp gains from the day before as solid USA economic date limited further gains for loonie.

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