US to remain ‘vigilant’ to downside risks to economy, says Treasury head

The US Treasury Secretary Janet Yellen said Tuesday the nation and her agency continue to remain “vigilant’” to the downside risks to the economy.

“In the United States, our labor market remains strong. Our unemployment rate is near historic lows. Inflation remains too high, although we’ve seen welcome signs over the past half-year that inflation has moderated,” she said in a statement.

“As we tackle our immediate challenges, the United States is also making historic long-term investments in the productive capacity and resilience of our economy,” she added.

Yellen said the US is also focused on monitoring and adapting regulations to risks posed by digital assets and acknowledged recent pressures on banking systems.

“Here at home, the U.S. banking system remains sound, with strong capital and liquidity positions. The global financial system also remains resilient due to the significant reforms that nations took after the financial crisis,” she said.