Treasury Secretary Janet Yellen has warned that financial stability risks are possible in the United States. Noting that “Inflation is still too high and we are facing severe global headwinds,” she stressed that the Treasury Department is “closely monitoring the financial sector, as global developments continue to grow.” demand has resulted in increased market volatility”.
Janet Yellen warns of US Financial Stability Risks
Treasury Secretary Janet Yellen warned of financial stability risks to the U.S. economy while answering questions after her speech at the Securities and Exchange Industry Association’s annual meeting. Financial Markets (SIFMA) on Monday.
Citing a “dangerous and volatile environment” for the global economy, including a rise in energy prices and increased volatility in financial markets, Yellen warned that in the United States:
Financial stability risks may materialize.
Yellen added: “We are keeping a close eye on the financial sector, as global developments have led to increased market volatility. “So far, the US financial system has not been a source of economic instability. While we continue to monitor emerging risks, our systems remain resilient and continue to function well through uncertainties. “
Yellen on the US economy and inflation
Treasury Secretary Janet Yellen also talked about the US economy and inflation in her speech at the SIFMA annual meeting on Monday. While noting that “The U.S. economy remains remarkably strong,” she warned:
Inflation remains too high, and we are facing serious global headwinds.
“Growth is slowing globally. And food and energy prices have risen, in part due to Putin’s terrible war in Ukraine and the lingering effects of the pandemic abroad. Climate change continues to wreak havoc on communities, exacerbating energy and food shortages in Europe and around the world,” continued the treasury secretary. “We are very pleased with these risks.”
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