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U.S. Treasury Secretary Yellen: Gasoline prices may continue to rise and inflation remains at risk
Source: Wall Street News Han Xuyang
Yellen said that while U.S. gasoline prices have fallen for decades, there is still a risk of another rise due to uncertainty over the inflation outlook.
On Sunday, U.S. Treasury Secretary Janet Yellen said in an interview with the media that U.S. gasoline prices may rise again later this year:
This risk is there, and we’re working on a price cap to try to address that risk.
She pointed out a few days ago that U.S. gasoline prices have fallen for 80 consecutive days, which led to a drop in the overall CPI increase in July. But a lot of uncertainty remains about the long-term inflation outlook due to the Russian-Ukrainian conflict and the ensuing energy crisis.
Yellen says EU will largely stop buying this winterRosneftAnd a ban on services that enable Russia to transport oil by tanker could send oil prices soaring.The U.S. is moving to lower global oil prices by setting price caps to lower Russia’s revenue while maintaining Russian oil supplies.
On September 9, the U.S. Treasury Department released a preliminary plan to impose a service ban on the maritime transportation of Russian crude oil and petroleum products to meet the restrictions.russian oilpurpose of import prices. The plan will be effective for the sea transportation of Russian crude oil from December 5, 2022, and for the sea transportation of Russian petroleum products from February 5, 2023.
Yellen remains hopeful that the U.S. economy can avoid a recession, adding that people need to understand the need for the Fed to beat inflation:
To achieve what we call a soft landing,The Fed needs great skill and some good luck.
I hope we will have a soft landing, but Americans know that lowering inflation is critical. In the long run, we cannot have a strong labor market without inflation under control.
Yellen’s remarks were in line with Fed Chair Jerome Powell’s. Powell said last week that he and other Fed officials are “firmly committed” to curbing inflation, which remains near 40-year highs in the United States.
Markets have now raised expectations for a third straight 75 basis point rate hike by the Fed at its Sept. 20-21 policy meeting.
Yellen said President Biden will leave monetary policy to the Fed:
I believe our goals are very aligned and we would like to see a strong labor market and inflation back down to more normal levels.
Yellen said the U.S. economy is slowing, a natural consequence of rising interest rates, even though the labor market remains “unusually strong” – with nearly every job seeker having two open positions to choose from.
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Responsible editor: Guo Mingyu