US Treasury Secretary Janet Yellen said that while the US financial system is currently sound, current conditions create conditions that could lead to risks to the stability of the financial system.
“The current environment is dangerous and unstable for the global economy, including high energy prices and increased volatility in financial markets,” Yellen added at the annual meeting of the Association of Financial Markets and the American Securities Industry in New York, adding that environmental stability risks.
“To date, the US financial system has not been a source of economic turmoil…although we are still watching for emerging risks…our system remains resilient and continues to function well despite the uncertainty” surrounding the global economy as a whole. Yellen said.
She said trading in US Treasuries, the world’s largest bond benchmark market, is picking up despite her references to previous waves of pressure on US bonds, pointing to ongoing work to improve US bond market performance.
Yellen also pointed to the potential risks that could come from an increase in private lending.
Source: db a