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Yellen plays down US recession risk, Citigroup tightens enforcement of work-from-office policies and authorities scrutinize a short-seller t [View in browser]( [Bloomberg]( Yellen plays down US recession risk, Citigroup tightens enforcement of work-from-office policies and authorities scrutinize a short-seller target. — [Kristine Aquino]( Yellen reassures [Treasury Secretary Janet Yellen sees diminishing risk of the US falling into recession](, and suggested that a slowdown in consumer spending may be the price to pay to contain inflation. Commenting on the chance of an economic contraction in a Bloomberg News interview, Yellen said “my odds of it, if anything, have gone down — because look at the resilience of the labor market, and inflation is coming down.” That said, she did not rule out the risk of a slowdown, given the potential for more rate hikes from the Federal Reserve. Office woes [Citigroup has begun telling managers to let staffers know they’ll face potential consequences](for their performance ratings or pay packages if they don’t comply with policies for office attendance. “We have firm expectations for office attendance and know that the majority of our employees are compliant with their requirements,” the bank said in a statement. Citigroup is widely seen to be among the most amenable financial firms when it comes to flexible work arrangements, with the majority of its roughly 240,000 employees considered hybrid and expected to come into the office at least three days a week. Short-seller saga [US authorities are looking into what representations Adani Group made to its American investors]( following a report from short-seller Hindenburg Research, which accused the company of long-running stock manipulation and accounting fraud. The US Attorney’s Office in Brooklyn, New York, has sought information from institutional investors with large holdings in the India conglomerate, according to one person familiar with the inquiries. The Securities and Exchange Commission also has a similar probe underway, two other people said. News of the inquiries emerged as President Joe Biden rolled out the red carpet for Indian Prime Minister Narendra Modi at the White House. Risk off S&P 500 futures slid 0.5% as of 5:50 a.m., while Nasdaq 100 futures declined 0.7%. A Bloomberg gauge of the US dollar traded near the day’s highs, pressuring all Group-of-10 currencies. Treasury yields fell across the board, following pullbacks in the UK and Europe. Gold advanced, Brent crude slid more than 1.5% and Bitcoin fell for the first time in five days. Coming up… At 9:45 a.m, we’ll get the latest reading for S&P Global’s gauge of US manufacturing and services. Cleveland Fed President Loretta Mester will speak at 1:40 p.m. Earnings include CarMax. What we’ve been reading Here’s what caught our eye over the past 24 hours: - [US Navy detected the Titanic sub’s “catastrophic implosion”]( days ago - Stress from UK rate hikes [wipes out the FTSE 100’s gains this year]( - Interviews with Putin, Trump: [inside Prince Harry’s podcast pitch]( - Why Saudi Arabia is spending [millions on soccer stars]( - Five-star hotel guest in India[leaves without paying for 603-night stay]( - [A 99% stock crash and shock default]( alarms investors in Thailand - [US military helps get aid to a Syrian camp]( that has been cut off for years And finally, here’s what Vassilis is interested in this morning… So that was it with June monetary policy decisions by the world’s major central banks. The Federal Reserve paused, the European Central Bank met expectations, the Swiss National Bank hiked by less than priced in while the Bank of England and Norges Bank tightened by more than expected. What I took from price action in the past couple of sessions is that the currency market may be at the early stages of pricing in a multi-month pause from the Fed while pound bulls may be facing an unsolvable puzzle. The Bloomberg Dollar Spot Index was heading for its narrowest weekly range since April until Thursday’s London-New York crossover. Fed Chair Jerome Powell’s comments that more hikes may be needed this year sent Treasury yields higher and the greenback followed suit as it enjoyed its best day in a month. His congressional testimony wasn’t a game changer as it essentially went in line with guidance at the Fed’s meeting last week. But the more I think of it, the more it strikes a dovish tone to me. The uncertainty surrounding the time lag for policy adjustments to work their way through the real economy and his disinflationary comment on housing suggest that July is indeed a live meeting but the odds may be in favor of another pause — in contrast to money market pricing that assigns a 80% chance for a quarter-point hike. As he said, rates have been hiked to an appropriately restrictive level and further tightening will be needed if the economy performs about as expected. It’s all about data dependency right? Well, Bloomberg’s Economic Surprise index stands at its strongest level in more than two years. Shouldn’t the Fed sound more determined in tightening policy further given it seems that it hasn’t broken something completely, beside a few cracks on the weakest links of the banking sector? We may have entered an era where it will take strong beats in tier-one data releases for the Fed to move again. Something tells me the Jackson Hole symposium in late August will be quite the interesting one. — [Vassilis KaramanisÂ]( Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Five Things to Start Your Day: Americas Edition newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](