Janet Yellen in conversation with WSJ Editor in Chief Matt Murray.
Photo:
The Wall Street Journal
Treasury Secretary
Janet Yellen
said the U.S. economy remains strong despite the fact that it shrank in the first quarter of this year, adding that inflation is too high and needs to be reduced.
She said the war in Ukraine could do economic damage in Europe that spills over into the U.S.
Ms. Yellen spoke Wednesday at The Wall Street Journal’s CEO Council Summit in London.
Ms. Yellen said the European Union’s planned embargo on imports of Russian oil could drive global energy prices even higher.
Ms. Yellen also said financial regulators are closely watching nonbank sectors, including money markets and hedge funds, after they saw stresses develop early in the pandemic. She said she doesn’t see the same dangers as in the run up to the 2008 financial crisis, but she noted the outlook is uncertain.
She added that she believes that Congress could still approve elements of the global minimum tax deal secured last year and expects the EU will approve the minimum tax plan this spring.
Sanctions on Russia have had a damaging effect on that country’s economy and the U.S. and allies are considering additional measures, Ms. Yellen said. But she didn’t rule out that Russia could again engage with the global economy. She said that if a peace agreement were reached, there is a path to de-escalate sanctions.
Write to Andrew Duehren at [email protected]
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