Economy

Yellen warns that war in Ukraine will have 'enormous' global economic impact

Key Points
  • Treasury Secretary Janet Yellen cautioned Wednesday that Russia's attack on Ukraine "will have enormous economic repercussions for the world."
  • She added that the U.S. is working with global organizations to provide aid to Ukraine and sanctions against Russia.
  • Yellen also reiterated the White House's commitment to the battle against the Covid-19 pandemic, stressing vaccine availability and readiness to address outbreaks.
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The war is exacerbating inflation, says Janet Yellen

Treasury Secretary Janet Yellen cautioned Wednesday that Russia's attack on Ukraine could cause a major hit to the global economy.

"Russia's actions, including the atrocities committed against innocent Ukrainians in Bucha, are reprehensible, represent an unacceptable affront to the rules-based global order, and will have enormous economic repercussions for the world," Yellen told a House of Representatives panel in a hearing on the world's financial system.

Along with that dour outlook, Yellen said global organizations such as the International Monetary Fund and World Bank are working together to provide aid to Ukraine and sanction Russia.

U.S. Treasury Secretary Janet Yellen testifies before a House Financial Services Committee hearing on "the State of the International Financial System,” on Capitol Hill in Washington, U.S., April 6, 2022.
Tom Brenner | Reuters

She added the White House believes Russia should be cut off from the global financial system in retribution for its "brutal and unprovoked invasion of Ukraine."

"It cannot be business as usual for Russia in any of the financial institutions," Yellen said.

However, she noted that European nations are still reliant on natural gas from Russia, necessitating the need for licensing of Russia-based companies.

Earlier in the morning, the administration outlined a fresh round of sanctions against Russia, including penalties against President Vladimir Putin's children and prohibitions on new investment in Russia.

Along with the comments on the war, Yellen reiterated the White House's commitment to the battle against the Covid-19 pandemic, stressing vaccine availability and readiness to address outbreaks.