By FATIMA HUSSEIN, Associated Press

WASHINGTON (AP) — U.S. Treasury Secretary Janet Yellen on Wednesday sought to project confidence in the U.S. financial outlook while pledging vigilance to respond to “risks on the horizon.”

She delivers that message as world finance leaders gather in Washington to discuss the increasingly bleak outlook for the global economy.

“Our economy remains resilient in the face of headwinds in the global economy,” Yellen said during a meeting on the sidelines of this week’s annual meetings of the International Monetary Fund and its sister lending agency, the World Bank.

His remarks to the International Council of the Bretton Woods Committee crediting President Joe Biden’s domestic policies with contributing to America’s economic strength came as administration officials try to talk about the president’s policies ahead of the election. mid-term. These elections will decide the balance of power in Congress and in states across the country. Democrats — with no room for error — are fighting to retain control of the House and Senate.

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Russia’s invasion of Ukraine has driven up global food and energy prices – in some places exponentially, exposing vulnerabilities in the global food and energy supply . The ongoing COVID-19 pandemic, rising inflation and deteriorating weather conditions are also impacting global economies and exacerbating other crises, such as high debt levels in low-income countries.

These risks prompted the IMF to lower its projections for global economic growth in 2023, with global economic growth expected to be $4 trillion lower through 2026.

The grim projections come as central banks around the world are raising interest rates in hopes of tackling rising inflation. The US Federal Reserve has been the most aggressive in using interest rate hikes as a tool to cool inflation.

Vitor Gaspar, director of the IMF’s Fiscal Affairs Department, said on Wednesday that world leaders must “prepare for a shock-prone world.”

Yellen, a former chairman of the U.S. Federal Reserve, said the Biden administration is “committed to working with our partners to build resilience, in America and around the world, to the kinds of shocks we’ve seen.”

“We are very mindful of the risks on the horizon,” Yellen said. “Many other major economies are also facing high inflation. They must also continue to implement policies to curb this.

“Our way forward starts with the jobs we need to do around the house,” she said.

Associated Press reporter Paul Wiseman contributed to this report.

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