Yellen says inflation and higher gas prices remain 'risks'

Yellen says inflation and higher gas prices remain ‘risks’

When asked in CNN’s State of the Union address whether gas prices should rise again, Yellen said, “That’s a risk. And it’s a risk that we’re working on a price cap.” Told. Later this year.

“This winter, the European Union will nearly halt purchases of Russian oil. In addition, it will ban the provision of services that allow Russia to transport oil on tankers, which could trigger a surge. at oil prices,” she added.

Yellen continued: This is essential and is what we are introducing to avoid future oil price spikes.

G7 countries agree to cap Russian oil prices

The secretary’s comments may fuel fears that gasoline prices will then surge again. They began to sink last month, It provides relief to inflation-weary consumers and a slowing economy. The steady decline in prices has been driven by multiple factors, including recession fears that have pushed oil prices down and the fact that some Americans refrained from driving when gasoline prices topped $5 a gallon. increase.

early this month, G7 Group Finance Minister The United States, Japan, Canada, Germany, France, Italy and the United Kingdom said they would ban the provision of “services enabling the maritime transport of crude oil and petroleum products of Russian origin” above the ceiling price. This could hinder insurance and financing for oil transportation.

The top price will be set by a “broad coalition” of countries, they said in a joint statement. It will come into effect at the same time as the European Union’s next series of sanctions, including a ban on seaborne imports of Russian oil starting in early December.

Yellen on Sunday also underscored her trust in the Federal Reserve to decide how best to avoid a recession, but a potential recession is “a financial crisis that the Fed will use to correct inflation.” We are monitoring because it is a risk when we are tightening policy.”

“We’re seeing slowing growth, but that’s normal,” she told Bash, referring to the poor shape of the economy that President Joe Biden inherited in 2021.

She added that despite rising food and energy prices, “we have a good and strong labor market and I believe we can maintain it.”

Yellen stressed that she is optimistic about the economy and that the US is not in recession. In response to high inflation, the Federal Reserve has said he will raise interest rates four times so far in 2022, Prices may go up again this year.

Alex Stambaugh, Julia Horowitz, Michelle Toh, and Matt Egan of CNN contributed to this report.

Source: www.cnn.com

Yellen says inflation and higher gas prices remain ‘risks’

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