Janet Yellen, US Treasury Secretary: The global economy is resilient in the face of a difficult geopolitical outlook

The US Treasury Secretary Janet Yellenstated on Tuesday that the “world economy resists the challenging geopolitical panorama“.

Featured Statements

European banks should be urged to strengthen compliance measures and focus more on Russian evasion attempts.

European banks must ensure that foreign branches rigorously enforce sanctions compliance policies, especially in high-risk jurisdictions.

We continue to explore new ways to reduce Russia's revenue.

The most worrying evasion of US Russian sanctions has occurred through China, the United Arab Emirates and Turkey, but also in Europe.

Banks have beefed up compliance measures in response to US warnings about sanctions on secondary financial institutions.

The actions of the global financial sector are helping to frustrate Russia's ability to acquire battlefield goods.

Global financial conditions have eased since the banking sector turmoil in 2023, and risks have broadly balanced.

Vigilance remains in view of high corporate debt, leverage and liquidity mismatches in the non-banking sector, tensions in the commercial real estate sector.

Market reaction

The US Dollar Index is stable at 104.58 at the time of writing, little affected by Yellen's comments.