Yellen warns ‘Brexit’ could hurt US economy

Federal Reserve Chairwoman Janet Yellen on Tuesday warned of “significant economic repercussions” if Britain votes to leave the European Union.

Testifying before Congress, the central bank chief said the looming possibility of a “Brexit,” or British exit, is weighing on the Fed as it tries to steer the U.S. economy.

{mosads}“One development that could shift investor sentiment is the upcoming referendum in the United Kingdom,” she said, according to prepared testimony. “A U.K. vote to exit the European Union could have significant economic repercussions.”

The Fed decided earlier this month that it would hold off on raising interest rates, and Yellen said global uncertainty, highlighted by the upcoming British referendum on its status in the EU, was a major factor.

On both the foreign and domestic fronts, Yellen said it is difficult to get a handle on the trajectory of the U.S. economy. The May jobs report out earlier this month came in well below economists’ expectations, leading some to wonder whether the U.S. economy is beginning to weaken.

“Considerable uncertainty about the economic outlook remains,” Yellen said.