Yellen emphasized that the U.S. economy is on a strong trajectory. She noted the robust performance of the labor market and the decrease in inflation. However, she stated that global factors still pose risks.
In particular, she mentioned that the conflict in Ukraine has harmed the global economic outlook and led to cost increases for low-income countries. She also expressed concerns about factors causing rising oil and food prices.
Yellen pointed out that the Israel-Palestine conflict could potentially have economic implications but emphasized that, for now, she believes it won’t significantly impact the global economic outlook.
According to Yellen, the Global Economy Depends on the US and China
Highlighting the interconnectedness of the global economy with the economies of the United States and China, she emphasized that both countries need to play a role in this regard. She stated that both countries consider this cooperation necessary and desirable, underscoring the importance of collaboration on critical issues like climate change.
Yellen to Meet with the President of the People’s Bank of China
Furthermore, she announced that she will meet with the President of the People’s Bank of China. She expressed a desire for a healthy economic relationship between the United States and China, as well as cooperation on global challenges such as debt restructuring and climate change.