A U.K. vote in favor of leaving the EU on June 23 would have an impact on the global economy and is a factor the U.S. central bank will consider when assessing whether to lift interest rates, Federal Reserve Chair Janet Yellen said yesterday.
“One development that could shift investor sentiment is the upcoming referendum in the United Kingdom,” Yellen said in a speech at the World Affairs Council of Philadelphia. “A U.K. vote to exit the European Union could have significant economic repercussions.”
Yellen said that “in the current environment of sluggish growth” and low inflation, “investor perceptions of and appetite for risk can change abruptly.”
Yellen called the EU referendum vote one of several “important uncertainties” the Fed is monitoring.
“We should expect to be surprised in the future just as we have been surprised in the past,” Yellen said.