If the West decides to impose sanctions on Russia over a possible invasion of Ukraine, it could have “global consequences,” Yellen said. The minister spoke in particular about the consequences for the energy market, “given the importance of Russia as the supplier of oil to the world market and natural gas to Europe”.
Yellen says the Biden administration is currently “doing everything it can” to curb inflation, which is currently “a major concern for many Americans.” Prices rose in the aftermath of the corona pandemic, partly because problems arose with the supply of products. The Federal Reserve will act “appropriately” to control inflation, Yellen said.
Yet the US economy is not in bad shape, according to Yellen. She draws a comparison with the financial crisis in 2008, which caused catastrophic damage. Despite two years of the corona pandemic, there were no such consequences this time. The minister also refers to the strong labor market.