US Treasury Secretary Janet Yellen has again eased concerns about the resilience of the banking sector, saying the global economy is better off than it was six months ago.
In prepared remarks for an event scheduled today, Yellen recalled that in February she described the global economy as “in a better position than many predicted last fall,” adding that “that basic picture remains largely unchanged.”
Yellen’s somewhat optimistic reading comes despite the troubled bankruptcies of two midsize US lenders in March, which threatened to destabilize the financial system and undermine growth. Subsequently, the near collapse of the European giant Credit Suisse has shaken investors around the world, raising questions about possible new infections.
The Secretary’s comments also contrast with the IMF’s revised economic outlook for 2023, which cut its global growth projections to 2.8% this year and 3% in 2024.