Federal Reserve Chair Janet Yellen was mum on the timing of another rate hike during a speech yesterday in Philadelphia, which is being viewed as a signal that a June move isn’t in the cards, according to Bloomberg. Fed caution isn’t not necessarily bad for EMs, according to the Financial Times (paywall). “The [USD] has already gone sharply into reverse after rallying during all of May … [which] should also bring relief to liquid (and consequently battered) EM currencies … and of course, it will make life easier for China, whose currency was coming under pressure again due to [USD] strength.”

Speaking of China, President Xi Jinping avoided talk of contention between his country and US on Monday at the start of the US-China Strategic and Economic Dialogue. Bloomberg estimates Xi may be more concerned about the domestic economy as industrial production slows and Goldman Sachs put its debt levels at much more than anticipated. Meanwhile, Chinese Finance Minister Lou Jiwei wasn’t quite so composed, expressing a “rare display of anger” at US criticism on steel oversupply, according to the FT (paywall).