Treasury Secretary Janet Yellen: US Financial Stability Risks Could Materialize, Cites ‘Dangerous and Volatile Environment’
Treasury Secretary Janet Yellen has warned that financial stability risks could materialize in the U.S. Noting that “Inflation remains too high, and we are contending with serious global headwinds,” she stressed that the Treasury is “closely monitoring the financial sector, as global developments have led to increased market volatility.”
Janet Yellen Warns of Financial Stability Risks in U.S.
The Secretary of the Treasury Janet Yellen warned about financial stability risks to the U.S. economy while responding to questions following her speech at the Securities Industry and Financial Markets Association (SIFMA) annual meeting Monday.
Citing a “dangerous and volatile environment” for the global economy, including the surge in energy prices and increased volatility in financial markets, Yellen warned that in the United States:
Financial stability risks could materialize.
“We are closely monitoring the financial sector, as global developments have led to increased market volatility,” Yellen added. “To date, the U.S. financial system has not been a source of economic instability. While we continue to watch for emerging risks, our system remains resilient and continues to operate well through uncertainties.”
Yellen on U.S. Economy and Inflation
Treasury Secretary Janet Yellen also talked about the U.S. economy and inflation in her speech at the SIFMA annual meeting Monday. While noting that “The U.S. economy retains significant strength,” she cautioned:
Inflation remains too high, and we are contending with serious global headwinds.
“Growth is slowing globally. And energy and food prices have risen, driven partly by Putin’s terrible war in Ukraine and the pandemic’s lingering effects abroad. Climate change continues to devastate communities, exacerbating energy and food shortages in Europe and across the world,” the treasury secretary continued. “We are highly attuned to these risks.”
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