Janet Yellen noted a sharp rise in prices for wheat, energy and metals.
The U.S. Treasury Secretary Janet Yellen expressed concern about the prospects of an economic recession in Europe.
“We are really seeing high inflation, not only in the United States, but around the world,” she said, speaking at the Atlantic Council think tank on April 13. – This partly reflects changes in supply chains as a result of the pandemic, increased demand for goods. But to this is also added an increase in energy prices. In addition, Ukraine and Russia account for 20% of global food exports. We are seeing a sharp increase in prices for wheat, energy, various metals, including nickel and palladium, which are used in mechanical engineering, which will lead to an increase in prices for cars and a number of other goods.”
“This not only accelerates inflation, but also reduces demand, because households in such a situation will spend money primarily on more expensive food and heat. So, especially in the case of Europe, which is the most vulnerable, I am more (than in the USA) worried about the possibility of a recession, but global growth will also be hit,” Yellen added.