Yellen Reassures US on Global Economy, Banking System

'Not anticipating downturn' but acknowledging it 'remains a risk'

Treasury Secretary Janet Yellen testifies about the Biden administration's FY2024 federal budget proposal before the Senate Finance Committee in the Dirksen Senate Office Building on Capitol Hill in Washington on March 16, 2023. Chip Somodevilla/Getty Images

U.S. Treasury Secretary Janet Yellen attempted to reassure Americans about the state of the global economy at a press conference on Tuesday. While acknowledging the possibility of an economic downturn, she said she did not anticipate one and believes that the U.S. banking system remains strong.

“I’ve not really seen evidence at this stage suggesting a contraction in credit, although that is a possibility,” Yellen said. “I believe our banking system remains strong and resilient; it has solid capital and liquidity.”