Janet Yellen is voicing her concerns about the Ukraine war, saying it will have “enormous economic repercussions,” which include disruptions in global food and energy supplies. “Globally, spillovers from the crisis are heightening economic vulnerabilities in many countries that are already facing higher debt burdens and limited policy options as they recover from COVID-19,” she said. In other news, stocks fell again Thursday morning as the market tried to recover from back-to-back losing sessions.

 

CNN Business/Anneken Tappe and Matt Egan
Janet Yellen warns of ‘enormous’ economic repercussions from war in Ukraine

US Treasury Secretary Janet Yellen warned Wednesday about the economic shock waves set off by the war in Ukraine, including disruptions to the global flow of food and energy.

“Russia’s actions represent an unacceptable affront to the rules-based, global order, and will have enormous economic repercussions in Ukraine and beyond,” Yellen said during her testimony before the House Financial Services Committee.

The war — and the political response of the West, mostly through sanctions — has already sent food and energy prices soaring and has raised concerns about an economic slowdown or even recession during a time of already rampant inflation around the world. In the United States, for example, inflation is at a level not seen in 40 years.

Yellen described Russia’s invasion as “brutal and unprovoked” on Wednesday, and emphasized the Treasury Department is committed to holding Russia “accountable for its actions.”

Read the full story, here.

 

CNBC/Samantha Subin and Yun Li
S&P 500 is flat as investors digest the Fed’s tightening plan

Stocks fell again on Thursday, following back-to-back losing sessions, as traders weighed the Federal Reserve’s plans to tighten monetary policy.

The Dow Jones Industrial Average fell 200 points, or 0.6%. The S&P 500 was flat and the Nasdaq Composite rose 0.3% lower after falling more than 2% on Wednesday.

Utilities, consumer staples and health care companies rose slightly on Thursday as investors continued their search for safe-haven stocks, which included Walmart, Merck and Procter & Gamble. On the tech front, shares of HP Inc surged 13% after Warren Buffett’s Berkshire Hathaway disclosed a stake in the tech hardware maker.

Investors also digested initial jobless claims on Thursday, which came in at 166,000 last week, their lowest level since 1968, and signaled the job market remains under pressure.

You can read the entire article, here.

 

Yahoo News/Kerry Hannon
Economist: ‘Retirement for most people is financial suicide’

Laurence Kotlikoff, the brash Boston University economics professor and Social Security expert, doesn’t mince words.

“We Americans are financially quite sick,” he writes in his new book, “Money Magic: An Economist’s Secrets to More Money, Less Risk, and a Better Life” before listing all the financial gaffes we Americans make in our lifetimes.

“As a group, we undersave, underinsure, under diversify, pay for bad investment advice, rely on dying early, retire too soon, take Social Security at the first chance, free far too little trapped equity, borrow to invest in stocks, convince ourselves that stocks are safe long-term, live house poor,” he writes.

Marriage, divorce, college, and other lifestyle decisions we make irk him as well. But it’s a lack of savings — especially for retirement — that really gets under his skin.

“Most workers are saving bubkes,” he writes. “Half of today’s working families risk a major living-standard decline in retirement. The share would drop roughly in half were all workers to retire two years later.”

So, he offers his retirement advice in his book, which comes with a title that is a bit of a wink. It’s not abracadabra.

Continue reading, here.

 

 

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