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Yellen Says Brexit Could Damage the U.S. Economy

Yellen Testifies At Joint Economic Committee Hearing On Economic OutlookYellen Testifies At Joint Economic Committee Hearing On Economic Outlook
Federal Reserve Chairman Janet Yellen testifies before a Joint Economic Committee hearing on Capitol Hill, December 3, 2015 in Washington, DC.Mark Wilson—Getty Images

On Tuesday, in testimony before the U.S. Senate, Janet Yellen, the head of the U.S. Federal Reserve, said that a pro-Brexit vote could potentially be a big blow to the both the U.K and U.S. economy.

Yellen said a pro-Brexit vote would add “significant uncertainty” and increase volatility in financial markets. She also said that a pro-Brexit vote would likely be damaging to the U.K. economy. She also said it could have a negative impact no the U.S. as well.

“The relationship between the EU and the U.K. is an important relationship,” said Yellen. “A U.K. vote to exit the European Union could have significant economic repercussions.”

Last week, Yellen at a Fed press conference said that Fed policy makers were worried about how a Brexit would impact the global economy, and played into the fact that the U.S. central bank decided to put off raising interest rates.