US Treasury Secretary Janet Yellen has warned that gas prices could rise again this year. “What we are working to address is the risk of working on price reform,” she stressed. “Our price reform proposal is designed to both lower Russia’s revenues … while maintaining Russian oil supplies that help lower global oil prices.”
Janet Yellen on rising gas prices, inflation, EU sanctions and Russian oil
Treasury Secretary Janet Yellen spoke about the U.S. economy, inflation, gas prices and Russian oil in an interview on CNN’s “State of the Union.”
Asked whether Americans should be worried about rising gas prices later this year, Yellen replied:
Well, it’s an accident. And it’s a risk that we’re working on a price ceiling that we’re trying to solve.
“Our rate hike proposal is designed to lower Russian revenues that are used to support their economy and fight this illegal war, while also protecting Russian oil supplies that help keep global oil prices down,” Yellen reported. “So I believe that’s something that could be important, and something that we’re trying to prevent from going up in oil prices in the future.
The EU approved a package of sanctions in June that will ban Russian crude oil imports by sea from December 5 and oil products from February 5, 2023. The sanctions prohibit EU companies from providing ship insurance, brokerage services or services. Financing oil to export from Russia to other countries.
“This summer, the European Union will stop buying most of the Russian oil,” Yellen said on Sunday. “They will also block services that allow Russia to transport fuel by tanker.”
The Treasury Secretary warned:
And that could lead to an increase in oil prices.
Average gas prices in the U.S. have fallen steadily since hitting record highs in June. However, the Treasury estimated that banning insurance for Russian seaborne supplies could take up to five million barrels per day of crude and refined products off the market, leading to significant price increases.
During Sunday’s interview, Yellen expressed her confidence in the Federal Reserve to decide the best course of action to avoid a recession. A recession is “a risk when the Fed tightens monetary policy to correct inflation,” she said, adding that “it’s certainly a risk we’re watching.”
In the year Stating that the US economy was in bad shape when Joe Biden became President of the United States in 2021, we
We are seeing some slowdown in growth, but that is natural.
Yellen reiterated her optimism about the US economy. In July, she said the US economy was in transition, not recession. Despite higher food and energy prices, the Treasury Secretary commented, “We’ve got a good, strong labor market, and I believe that’s going to continue.”
What do you think of Treasury Secretary Janet Yellen’s comments? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
DisclaimerThis article is for informational purposes only. It is not an offer or solicitation to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the Company nor the Author shall be liable, directly or indirectly, for any damages or losses arising out of the use of or reliance on any content, goods or services referred to in this paragraph.