Janet Yellen said that the Russian atrocities are an affront to the world order that will have wide-ranging economic repercussions.
US Secretary of the Treasury Janet Yellen has warned that Russia’s aggression in Eastern Europe will have “enormous economic repercussions in Ukraine and beyond,” and that President Joe Biden wants Russia kicked out of the group of 20 Forum of the main economies.
His comments at a US House Financial Services Committee hearing on Wednesday raised questions about the future of the G20, which has been the world’s leading economic and political forum since the 2008-2009 financial crisis.
“President Biden made it clear, and I certainly agree with him, that it cannot be business as usual for Russia in any of the financial institutions,” Yellen said. “He called for Russia to be removed from the G20, and I made it clear to my colleagues in Indonesia that we will not participate in a series of meetings if the Russians are there,” Yellen said.
G20 finance ministers and central bank governors will meet in person and virtually in Washington at the end of April on the sidelines of meetings of the International Monetary Fund and the World Bank. Indonesia holds the G20 presidency this year and plans to host a finance meeting in July and a leaders’ summit in November.
The comments come as the Biden administration announced a new round of sanctionsincluding against the two adult daughters of President Vladimir Putin and the tightening of sanctions against Russian banks in retaliation for “war crimes” in Ukraine.
United States and western allies they have imposed an avalanche of sanctions against Russia in the first weeks of the war and administration officials in recent days have focused more on closing loopholes that Russia might try to use to circumvent them.
“Treasury is committed to holding Russia accountable for its actions so that it cannot benefit from the international financial system,” Yellen said.
Russia’s invasion, he added, “including the atrocities committed against innocent Ukrainians in Bucha, are reprehensible, represent an unacceptable affront to the rules-based global order, and will have enormous economic repercussions for the world,” he told the committee.
The increase in the price of energy, metals, wheat and corn produced by Russia and Ukraine “will also increase inflationary pressures.”
inflation in the united states has hit 40-year highs as an inflation metric closely monitored by the Federal Reserve jumped 6.4 percent in February from a year ago, the biggest year-over-year increase since January 1982.
“The sanctions that we have imposed on Russia are raising the price of energy. It is an important price to pay to punish Russia for what it is doing in Ukraine,” she added, drawing on how the conflict is affecting Americans at home.