Fed chief Janet Yellen warns of Brexit impact on US economy

Could affect investors' risk appetite

Jayna Rana
clock • 2 min read

Federal Reserve chair Janet Yellen has said a UK vote to leave the European Union (EU) could have "significant economic repercussions" in the US and will affect the Fed's decision to raise interest rates.

Brexit is one of the factors the central bank would consider when deciding whether to raise interest rates, Yellen said in a speech on Monday, according to the BBC. She warned investors' "appetite for risk" could change suddenly and market sentiment would be hit if the UK were to leave the EU. Yellen (pictured) said: "A vote to exit the EU could have significant economic repercussions." Her comments mirror those of Federal Reserve board of governors' Lael Brainard, who suggested a Brexit could have a "significant adverse reaction" to the US market. In her speech, Yellen also rei...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Partner Insight: Tariffs are here to stay. What's next for investors?

Partner Insight: Tariffs are here to stay. What's next for investors?

The current outlook for US tariffs is complex and their full impact on growth remains to be seen. Columbia Threadneedle Investments explores what advisers need to know, key events to keep top of mind and how to navigate the uncertainty.

Columbia Threadneedle Investments
clock 23 October 2025 • 5 min read
IFS: Reeves must plug £22bn fiscal hole to restore 'tiny' headroom

IFS: Reeves must plug £22bn fiscal hole to restore 'tiny' headroom

Think tank urges chancellor to avoid 'limping from one forecast to the next'

Linus Uhlig
clock 16 October 2025 • 2 min read
Why higher bond yields aren't causing a Mini-Budget meltdown

Why higher bond yields aren't causing a Mini-Budget meltdown

'One thing we know about Rachel Reeves is she will live or die by her fiscal rules'

Laith Khalaf
clock 07 October 2025 • 5 min read