Janet Yellen: Russia’s invasion expected to have ‘enormous economic repercussions’

Treasury Secretary Janet Louise Yellen warned a House hearing on Wednesday, that Russia’s aggressiveness in Eastern Europe will have “enormous economic repercussions in Ukraine and beyond.” She went on to say that the increased price of oil, metals, wheat, and grain produced by Russia and Ukraine “will exacerbate inflationary pressures as well.”

The Russian invasion of Ukraine, according to Treasury Secretary Janet Yellen, will have “enormous economic repercussions” around the world.

Yellen called Russia’s invasion of Ukraine “an outrageous assault to the rules-based, global order,” and predicted the crisis will have “huge economic ramifications in Ukraine and beyond.”

For one thing, interruptions in Ukraine and Russia, which together control about a third of the world’s wheat exports, are threatening global food security. “Russia’s invasion hindered the flow of food for millions of people all over the world, causing prices to skyrocket.”

“Fast-disbursing budget support, finance to support domestic food production, and social safety nets,” Yellen said, adding that financial institutions are “doing essential work to address both the short-term and long-term effects on global food prices and supplies.”

For another, Yellen claimed that the Ukraine crisis emphasizes “the need for sustainable, affordable, clean, and secure energy for the United States’ economic growth and security.”

She claims that financial institutions are promoting “energy efficiency and capital investment in diverse energy sources — and away from suppliers like Russia — toward solar, wind, and other non-fossil fuel-based energy sources.”

Yellen went on to describe the help granted to Ukraine by international financial institutions, including the IMF’s $1.4 billion in quick funding and the World Bank’s $3 billion.

“President Biden has rallied over 30 countries, representing more than half of the global economy, to impose swift, severe sanctions and export controls on Russia,” she said.

The United States pledged an additional $100 million in military aid to Ukraine during Yellen’s speech. Since Russia invaded Ukraine on February 24, the US has spent over $1.7 billion on security support to the former Soviet republic.

 

 

2 Responses

  1. If Biden would stop spending billions on illegals, there would be more money for helping Ukraine and Americans.

  2. While I applaud Joe Biden for finally imposing sanctions on Russia it is too little, too late. I support all
    NATO countries as well as those around the world coming to aid of Ukraine but why was the delay
    necessary. The question is will sanctions against Russia work without causing Ukraine and
    others dependent on Russia for gas, wheat etc. to suffer also to the point of global starvation.
    Will China support Russia, or North Korea? There will always be haves and have nots in this
    world if each of us do not accept responsibility for those less fortunate. I pray nightly this
    world does not have WW 3.

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