WASHINGTON (Sputnik) — UK nationals are set to vote on June 23 in a referendum on the country's membership in the European Union, after Prime Minister David Cameron and the leaders of the 27 EU member states agreed in February to grant the United Kingdom a special status within the bloc.
"I think the financial market reaction to the uncertainties that would be unleashed by that decision [Brexit] could result in a kind of risk-off sentiment, that we would see impacts on financial markets, that we might see flight to safety flows that could push up the dollar or other so-called safe-haven currencies," Yellen stated.
Yellen noted that a US recession caused by a potential Brexit is unlikely.
"We just don't really know what will happen and we will have to watch very carefully," she added.
