Treasury Secretary Janet Yellen believes the U.S. financial system is in working order, but that Russia’s invasion of Ukraine and China’s Covid-19 lockdowns are making some goods more expensive.
Yellen, set to testify before the Senate Banking Committee on Tuesday, said she and other top financial regulators wouldn’t be surprised to see market turbulence keep up into the summer.
“Russia’s unprovoked invasion of Ukraine has further increased economic uncertainty,” she said. “The U.S. financial system has continued to function in an orderly manner, though valuations of some assets remain high compared with historical values.”
U.S. stocks sank again on Monday as the broad S&P 500 index added to its longest losing streak since mid-2011 and touched a one-year low as rising interest rates fueled worries of far-tighter monetary conditions.