Categories: WORLD

Russia’s Economy Is “Clearly In Recession” And Facing 20% Inflation, US Treasury Secretary Says

US Treasury Secretary Janet Yellen testifies before the Senate Banking, Housing, and Urban Affairs Committee hearing on The Financial Stability Oversight Council Annual Report to Congress, in Washington.

US Treasury Secretary Janet Yellen said on Tuesday that Western sanctions have delivered a powerful blow to Russia’s economy following the invasion of Ukraine.

“Their economy is clearly in recession,” Yellen told lawmakers during a hearing on the Financial Stability Oversight Council’s annual report to Congress, adding that there are forecasts the Russian economy will contract by 10% to 15%.

Inflation in Russia is probably running around 20% this year, Yellen said. That would be more than double the 8.5% year-over-year jump in consumer prices in the United States in March.

Sponsored
“Russian firms that have been sanctioned are finding it almost impossible to gain access to goods and services that they need in global markets,” Yellen said, adding that this includes major defense firms that can’t find the computer chips and other components they need to restock their defense arsenals.

Earlier, Yellen said that “Russia’s unprovoked invasion of Ukraine has further increased economic uncertainty.”

The war in Ukraine has disrupted supplies of food and energy, contributing to the highest level of inflation in decades. The average price of regular gasoline has increased about 25% to record highs since Russia invaded Ukraine in late February.

Yellen said financial regulators will continue to monitor developments and “coordinate actions as the risks and threats evolve.”

SPONSORED
ABN Editor 2

An open source journalist and content manager

Recent Posts

Governor Otti Appoints Additional Members To ABSU Governing Council

In a bid to strengthen the leadership and management of Abia State University, Uturu (ABSU),…

7 minutes ago

” I’ve Hit Rock Bottom ” – Mbappe

Kylian Mbappe has described his penalty miss against Athletic Club as a pivotal moment in…

3 hours ago

Okpebholo Preaches Unity At Edo Christmas Carol

Edo State Governor, Monday Okpebholo, said Christmas represents the values that unite us as a…

3 hours ago

Africa Magic Opens Entries For 11th AMVCA

Africa Magic, in partnership with MultiChoice, has called for entries for the 11th edition of…

3 hours ago

Stocks Surge As US Inflation Data Eases Pressure

Asian markets rose after big gains on Wall Street, with traders welcoming below-forecast US inflation…

3 hours ago

NNPCL Stations Drop Petrol Price To N965 In Abuja

The retail price of premium motor spirit, also referred to as petrol, has decreased to…

4 hours ago