Treasury Secretary Janet Yellen Warns Gas Prices Could Spike This Winter — Says ‘It’s a Risk’

U.S. U.S. Treasury Secretary Janet Yellen warned that gas prices could increase again in the coming year. She stressed that "it's a risk we're working to address with the price cap." "Our proposal for a price cap is intended to lower Russian revenues, while maintaining Russian oil supplies that will help keep down global oil prices strong>

Janet Yellen: Gas Price Increase, Inflation and EU Sanctions. Russian Oil

Janet Yellen, Treasury Secretary, spoke about the U.S. economy and inflation in an interview with CNN's "State of the Union", Sunday.

Yellen responded to a question about Americans worrying about rising gas prices later in the year.

It's a risk. It's something we are working to reduce.

Yellen explained that the price cap proposal was designed to lower Russian revenues, which they use to support their economy. It also maintains Russian oil supplies, which will help keep down global oil prices. This is something I think can be important, and it's something we're trying put in place in order to prevent a future rise in oil prices.

In June, the European Union issued a package of sanctions that would prohibit seaborne imports from Russia of crude oil. The same applies to petroleum product imports. It will be effective as of December 5, and February 5, 2023. EU companies are also prohibited from providing financing, shipping insurance, brokerage services or financing for oil exports to Russia from other countries.

Sunday's Yellen explanation stated that the European Union would stop buying Russian oil "this winter". "They will also ban services that allow Russia to ship oil via tanker."

The treasury secretary warned:

It is possible for this to cause an increase in oil prices.

Since June's record-breaking high, the average U.S. gas price has been falling steadily. The treasury department estimates that banning Russian seaborne supplies insurance could result in five million barrels per day of crude oil and refined products being removed from the market. This would cause a huge price rise.

Yellen expressed her confidence in the Federal Reserve during the Sunday interview. She acknowledged that there is a possibility of a recession when the Fed tightens monetary policy to address inflation, but she also said that it was something that they are monitoring.

Yellen claimed that the U.S. economic situation was already dire in 2021, when Joe Biden became the president.

There is a slowdown in growth. This is normal.

Yellen stated again that she remains optimistic about the U.S. economic future. She stated that the U.S. is currently in a transitional state, and not in recession, in July. The treasury secretary said that despite higher energy and food prices, she believed it was possible to keep the country's strong labor market.

What did you think of Janet Yellen's comments? Comment below.

By: Kevin Helms
Title: Treasury Secretary Janet Yellen Warns Gas Prices Could Spike This Winter — Says ‘It’s a Risk’
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Published Date: Mon, 12 Sep 2022 23:30:49 +0000

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