US Treasury Secretary Yellen’s warning about the “global financial crisis”
In an interview, US Treasury Secretary Yellen made assessments of the economy.
Regarding the US federal government’s $31.4 trillion debt limit, Yellen said that the US Treasury Department has started to implement extraordinary measures, that these measures will continue until the beginning of June, but there is still no guarantee of it.
Yellen, emphasizing that the US has been a country that has met all of its financial obligations since 1789, stated that the US government’s confidence that it will always be able to pay its debts forms the foundation of the global financial system, and that US Treasuries are the “safe” assets.
Assessing the consequences of a possible US default, Yellen said: “It will certainly cause a recession in the US economy and may cause a global financial crisis. It will certainly undermine the role of the dollar as a reserve currency, “he said.
Yellen said raising the debt limit is a “non-negotiable or non-negotiable” issue. It’s always been like that in the past.” he said.
“WE HAVE VERY GOOD PROGRESS IN INFLATION”
Referring to the high inflation in the country, Yellen said that the progress they have made in the fight against inflation encourages her.
“I think we’ve seen really good progress on inflation in the US,” Yellen said. saying.
Stating that inflation remains a concern for households, Yellen said the supply chain bottlenecks that drive inflation have been resolved.
Emphasizing that the Federal Reserve is independent and cannot comment on its policies, Yellen said: “I think they are trying to do what they think is necessary to keep the labor market strong while ensuring that inflation continues to come down.” saying.
Assessing the meeting with Liu Hı, China’s vice premier responsible for foreign trade and international economic relations, this week, Yellen noted that the world’s two largest economies have a responsibility to cooperate on issues of global importance, including climate change. . Yellen said: “We discussed our cooperation and determination to work together to overcome global challenges.” he said. (AA)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
