US Treasury Secretary Janet Yellen has warned that gas prices could rise again this year. “This is a risk that we are working on the price range to try to address,” she emphasized. “Our price cap proposition is designed to reduce Russian revenues … to maintain Russian oil supply which will help reduce global oil prices.”
Janet Yellen on gas price hikes, inflation, EU sanctions and Russian oil
Treasury Secretary Janet Yellen talks about the US economy, inflation, gas prices and Russian oil in an interview on CNN’s “State of the Union” Sunday.
When asked whether Americans should be concerned about rising gas prices again later this year, Yellen replied:
Well, it’s a risk. And that’s a risk that we’re working on the price range to try to address.
Yellen elaborated, “Our price cap proposition is designed to reduce the Russian revenue they use to support their economy and fight this illegal war, as well as to maintain the Russian oil supply.” Let’s help.” “So I believe this is something that may be necessary, and it is something that we are trying to put in place to avoid a rise in oil prices in the future.”
The European Union imposed a sanctions package in June that would ban marine imports of Russian crude until December 5, and petroleum product imports until February 5, 2023. The sanctions also prohibit EU companies from providing shipping insurance, brokerage services, or. Financing for oil exports from Russia to other countries.
“This winter, the EU will, for the most part, stop buying Russian oil,” Yellen explained on Sunday. “In addition, they will impose restrictions on the provision of services that enable Russia to ship oil by tanker.”
The Treasury Secretary cautioned:
And it is possible that this could push up oil prices.
The average US gas price has fallen steadily since hitting a record high in June. However, the Treasury Department has estimated that banning insurance for Russian marine supplies could remove up to five million barrels a day of crude and refined products from the market, which would drive prices up sharply.
During Sunday’s interview, Yellen also expressed his confidence in the Federal Reserve to determine the best course of action to avoid an economic downturn. She acknowledged that recession “is a risk when the Fed is tightening monetary policy to contain inflation,” noting that “it is certainly a risk we are monitoring.”
Claiming that the US economy was already in bad shape in 2021, when Joe Biden took over as President of the United States, Yellen said:
We are seeing some slowdown in growth, but it is natural.
Yellen reiterated that he remains optimistic about the US economy. In July, it said the US economy was in a state of transition, not a recession. Despite high food and energy prices, the Treasury secretary said: “We have a good, strong labor market, and I believe it is possible to maintain that.”
What do you think of Treasury Secretary Janet Yellen’s comments? Let us know in the comments section below.
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