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

'Discussion-worthy stuff': Chinese assets under pressure

'Discussion-worthy stuff': Chinese assets under pressure

China has an 18% share of global GDP and only a 3% MSCI ACWI weighting

Chris Justham
clock 02 April 2024 • 2 min read
Why investors 'can't outrun' slow-moving demographics

Why investors 'can't outrun' slow-moving demographics

'Demographic change is a key megatrend'

Darius McDermott
clock 07 March 2024 • 5 min read
Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

British ISA, Office for Budget Responsibility, tax cuts

Valeria Martinez
clock 07 March 2024 • 4 min read