U.S. Treasury Secretary Janet Yellen stated today, Wednesday, that the situation in Israel raises additional concerns for the U.S. economy. Yellen mentioned during a press conference on the sidelines of the International Monetary Fund and World Bank meetings in Marrakech, Morocco, that she still expects a slowdown in the U.S. economy that does not reach the level of recession, although the attacks on Israel have heightened risks. She added, "Of course, the situation in Israel raises additional concerns. I am not saying that a slowdown in growth is certain. But I still believe that it is the most likely path."
Yellen pointed out that the cap imposed by the Group of Seven (G7) industrialized countries on Russian oil prices has led to a sharp decline in Russia's revenues over the past ten months. She stated, "It is essential to continue to impose high and increasing costs on Russia because of its war in Ukraine." Yellen noted that the war in Ukraine remains a significant obstacle for the global economy.
She reported that the updated IMF projections showed that the global economy is in a better position than expected during last year's annual meetings, but the Treasury Department continues to monitor downside risks. While some countries are experiencing a slowdown in growth, including China and the Eurozone, Yellen said she does not see signs of any widespread effects destabilizing the global economy.
