U.S. Treasury Secretary Yellen will go to a congressional hearing on Tuesday (10th), and she pointed out in her annual financial risk speech released in advance that the U.S. financial system is still operating in an orderly manner, although some asset valuations are still high compared to historical values.
U.S. stocks tumbled once more on Monday, with the S&P hitting a one-year low and closing down 3.2%, falling below the 4,000-point mark, which has been since the year’s high. It fell more than 16%.
According to the content of the speech released in advance by the U.S. Treasury Department, Yellen mentioned that as countries continue to work hard to deal with the new crown epidemic, global economic growth may continue to fluctuate, and Russia’s invasion of Ukraine will further increase economic uncertainty, she will not be surprised. Market turmoil might continue into the summer.
Yellen also noted that the U.S. Financial Stability Oversight Council (FSOC) is working to identify risks to digital assets and ensure that banks and other financial firms are better informed regarding their climate-related risks by improving data and strengthening disclosure requirements for public companies.
Wall Street fears a U.S. recession in late 2022 or 2023 as the U.S. Federal Reserve scrambles to suppress inflation, and analysts say the Fed needs to be cautious when raising interest rates so as not to put any pressure on economic activity to cool inflation.
Yellen said last week that the U.S. economy is on track for a “soft landing” with steady growth in the coming year. The Fed will need both skill and luck, but it’s possible.
