Yellen says global growth will take a hit from Ukraine war

Global economic growth will take a hit from Russia's war in Ukraine, U.S. Treasury Secretary Janet Yellen said on Wednesday, noting that it had sent prices for food, energy and some metals sharply higher, fueling existing inflationary pressures. "It is likely to be a hit to global growth," Yellen told an event hosted by the Atlantic Council think tank, adding that she "worried more about recession prospects" in Europe, which was most vulnerable to disruptions in energy supplies from Russia.

The United States had a "very strong economy, and a very strong labor market," Yellen said, but also faced "strong, strong wage pressures," inflation and the potential for further supply chain pressures due to COVID-19 lockdowns in China.