US Treasury Secretary Janet Yellen warned on Sunday of the risk of a recession and rising gasoline prices.
There is a ‘risk’ that US gasoline prices will rise again later this year, as fears grow that Americans’ wallets could be stretched by a price spike similar to that seen this summer, the official told CNN.
It is for this reason that “we are working for the price cap”, she added.
“This winter, the European Union will stop buying Russian oil….and it is possible that this will cause oil prices to rise,” she added.
The Treasury Secretary’s remarks could help stoke fears that gasoline prices could rise again after beginning to fall last month.
Yellen believed that the Federal Reserve (Fed) is able to determine the best way to avoid an economic recession, recognizing however that there is a risk of recession because of the Fed’s tightening of its monetary policy to curb the inflation.
“We’re seeing some slowing in growth, but that’s natural,” she added.
She added that despite rising food and energy prices, “we have a good, strong labor market, and I think it is possible to maintain that”.
In an effort to rein in high inflation, the Fed has raised interest rates four times so far in 2022 and is expected to raise rates further this year.