US Secretary of the Treasury Janet Yellen said she believes the American banking system remains resilient despite recent pressure on financial institutions, while the global economy is better off than some expected.
In prepared remarks ahead of the spring meetings of the International Monetary Fund (IMF) and World Bank, Yellen said that the US banking system remains strong and resilient with solid capital and liquidity.
“I’ve not really seen evidence at this stage suggesting a contraction in credit, although that is a possibility,” she said.
Yellen noted that the US economy was performing “exceptionally well,” pointing to job creation, moderating inflation, and robust consumer spending.
She added that the global economy remains in a better place than many had expected.
“So I’m not anticipating a downturn in the economy, although of course that remains a risk,” she said, highlighting the war in Ukraine and the recent turmoil in the banking sector as downside risks.
She said the US would continue to put pressure on Russia to end the war in Ukraine through sanctions and other measures.
"Over the past year, our campaign has systematically degraded Russia’s military-industrial complex and helped reduce the revenues that Russia can use to fund its war," she said.
"This year, a central piece of our strategy is to take further actions to disrupt Russia’s attempts to evade our sanctions."
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