Janet Yellen Expects ‘Enormous Economic Repercussions’ From Ukraine Invasion

Treasury Secretary Janet Yellen predicted that the world will see “enormous economic repercussions” from the Russian invasion of Ukraine.

In prepared remarks delivered on Wednesday to the House of Representatives’ Committee on Financial Services, the Biden administration official began by affirming the importance of international financial institutions — such as the International Monetary Fund and World Bank — as “critical to addressing the challenges we face today,” such as recovery from COVID-19 and climate change.

Condemning Russia’s invasion of Ukraine as “an unacceptable affront to the rules-based, global order,” Yellen said that the conflict would “have enormous economic repercussions in Ukraine and beyond.”

For one, global food security is threatened by disruptions in both Ukraine and Russia — which together control nearly one third of the planet’s wheat exports. “Russia’s invasion disrupted the flow of food for millions of people around the world and caused prices to spike,” Yellen said, explaining that financial institutions are “doing essential work to address both the short-term and long-term effects on global food prices and supplies” while “fast-disbursing budget support, financing to support domestic food production, and social safety nets.” – READ MORE