The U.S. economy has curbed inflation and posted enviable economic growth, but it remains vulnerable to world events, Federal Reserve Governor Lisa Cook warned on Wednesday.
“A worsening of global geopolitical tensions, including those involving Russia, the Middle East, and China, could lead to broad negative spillovers to global markets,” she said in prepared remarks at the Central Bank of Ireland Financial System Conference in Dublin.
Russia’s ongoing war against Ukraine continues disrupting regional trade, Israel’s war against Hamas in Gaza poses risks to energy and financial markets, and China’s economic slowdown could spill over into emerging market economies, she said.
“Escalation of geopolitical tensions could lead to lower economic activity and increased fragmentation of global trade flows … contributing to more sustained supply chain challenges and inflationary pressures,”…
