Other senior government officials walked away from a meeting in Washington last week in so-called emerging markets, including parts of Africa, Asia and South America, where food and energy prices are soaring and the Federal Reserve is making steady progress. Fears of a possible financial crisis have increased. Rising interest rates have forced governments to raise their own borrowing costs.such a crisis can spread all over the world Wealthy countries like the United States rebound.
Yet administration officials say the U.S. economy, still supported by rapid job growth and relatively low household debt, remains strong enough to withstand such shocks.
“This is a challenging moment in the global economy where stability is hard to find,” said Michael Pyle, Biden’s deputy national security adviser for international economic affairs. The United States is well positioned to meet these global challenges. ”
And there is no guarantee that something will explode. A senior Treasury official said this week that financial risks were rising due to high inflation and rising interest rates, but a range of data tracked by the Treasury showed that U.S. businesses, households and financial institutions continued to perform well. shows.
Barclays managing director Joseph Abeit said for now the market for short-term borrowing, which is crucial to the functioning of finance as a whole, looks healthy and fairly normal. Authorities are also working on safety measures to contain the fallout in the event of a disaster. The Financial Stability Oversight Council, led by Yellen, discussed the issue at its meeting. recent meeting Earlier this month, I listened to a staff presentation on US financial vulnerabilities.
The Treasury Borrowing Advisory Committee, an advisory group of market participants, asked in the latest survey Regarding Treasury Department programs that may buy back government debt. Some investors are concerned about the potential for trouble and believe it signals a desire to improve the functioning of the market, especially in light of comments and outreach.
“I am concerned about the lack of sufficient liquidity in the market,” Yellen said last week in response to a question after a speech in Washington.