“Of course there are risks and the global situation we face is very uncertain,” says Yellen (1946). Inflation is still too high. But if you look at the past year, inflation is coming down. And I know the Fed is committed to continuing the process of getting it back to more normal levels. I think they will.’
This is what the former Fed chairman said in a conversation with CNN during an unexpected visit to Ukraine. In the capital, Kiev, Yellen (b. 1946) talks, among others, with Ukrainian President Volodimir Zelensky about American support for Ukraine. The United States transfers $1.2 billion (€1.1 billion) of budget support to Ukraine.
Yellen stressed that effective government is imperative for Ukraine. The money should help keep essential government services, such as education or the fire department, running. In total, according to Yellen, the US government provided nearly $50 billion in aid to Ukraine last year. “We will push for further action by our allies and partners,” she added.
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Russian economy
Yellen expects the Russian economy to soon feel the effects of the series of sanctions imposed by the United States and the European Union. If foreign investment continues to decline, Russia will run out of reserves quickly, she thinks. “We will see Russia paying a bigger tribute in the near future,” which also threatens military might, Yellen thinks. China’s attempts to invest more in Russia could have “serious” consequences, she said.
“We will not tolerate sanctions violations,” he said. And we were very clear. If the Chinese government and Chinese companies or financial institutions violate these sanctions, the consequences will be very serious.”
End of war
At the G20 summit in Bangalore, India, Yellen said ending the war in Ukraine was “the most important thing” for the global economy. “This war is having the most devastating effects in Ukraine, but by using food and energy as a weapon, Putin has also damaged emerging countries and created global economic headwinds that have affected all countries.”