Yellen, US Treasury Secretary: "Global Economic Uncertainty Increases Due to Ukraine War"

Janet Yellen, U.S. Secretary of the Treasury
Photo by Reuters Yonhap News

[Asia Economy Reporter Park Byung-hee] U.S. Treasury Secretary Janet Yellen has assessed that global economic uncertainty has increased due to the Ukraine war.

According to Bloomberg on the 9th (local time), Secretary Yellen is scheduled to testify before Congress on the 10th and 11th regarding the annual report of the Financial Stability Oversight Council (FSOC), expressing this view. The U.S. Treasury Department released the content of Yellen's congressional testimony a day in advance.

In her congressional testimony, Secretary Yellen plans to state that the uneven growth and uncertainty factors in the global economy caused by the COVID-19 pandemic continue. She will also express that economic uncertainty has increased further due to Russia's invasion of Ukraine while the risks from COVID-19 have not yet disappeared.

However, Secretary Yellen plans to emphasize that the U.S. financial system has so far avoided turmoil and continues to operate in an orderly manner.

She will also warn that some asset prices are somewhat higher compared to historical levels.

The FSOC was established in 2010 under the Dodd-Frank Act to prevent the recurrence of financial crises following the global financial crisis triggered by the bankruptcy of Lehman Brothers in September 2008.

Secretary Yellen is scheduled to testify on the FSOC's annual financial stability report before the Senate Banking Committee on the 10th and the House Financial Services Committee on the 11th.

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