As expected, Janet Yellen's stance regarding US stimulus is in favor of large-scale packages. Gold and silver markets jumped to daily highs as soon as this line hit the news feed.
When asked about currency rates, Yellen replied that the US "is not looking for a weaker currency to gain a competitive advantage." She stressed that they "must resist attempts by other countries to do so."
These comments came as no surprise since the markets already expected this position.
"I believe the value of currencies should be determined by the markets," Yellen explained.
She also noted that she will work with President-elect Joe Biden in opposing other countries that are trying to gain trading advantage through currency manipulation. She added that targeting exchange rates for commercial benefits is not acceptable.
"I believe in a strong US economy that creates jobs for Americans. The stability of the US financial system is good for the country," she said.
If confirmed, Yellen will replace Treasury Secretary Steven Mnuchin, and become the first female Treasury Secretary in US history.
Yellen also warned there is a risk of recession if the government does nothing. She said now is the best time to "go big."
"Without further action, we risk dragging out a recession, which will cause long-term damage to the economy later," she said. "Neither the President-elect nor I offer this aid package without taking into account the country's debt burden. But right now, with interest rates at historically low levels, the smartest thing we can do is go big. "
"Getting people back to work is our first task," Yellen said. "The second challenge is to restore the economy to greater prosperity."
To date, world stock markets are mostly up, including US stock indices. Traders and investors are optimistic after the three-day holiday/weekend, but are cautious about the transition of power in the United States.