A cap on the price of Russian oil will be crucial to reducing inflation, US Treasury Secretary Janet Yellen said today.
In particular, speaking before the start of the meeting of the Group of 20 ministers of finance, Ms. Yellen stressed that efforts must be made to bring under control two main economic consequences of the Russian invasion of Ukraine, high fuel prices and growing food insecurity. insecurity sweeping the US and the entire planet.
She emphasized that high energy costs contributed significantly to the current rise in inflation in the US, which as it became known yesterday set a new 40-year record at 9.1%.
“We are seeing spillover effects from the (Russia-Ukraine) war in every corner of the world, particularly in relation to higher energy prices and increasing food insecurity,” said the US Secretary of State.
More generally, he emphasized that inflation in the country is “unacceptably high” and that reducing price increases is Washington’s “highest priority.”
“We support first and foremost the Fed’s efforts. Anything they deem necessary to bring inflation under control,” he told a news conference in Bali ahead of the meeting.
“Beyond that, we’re taking our own steps that we think in the short term will be supportive to lower inflation — particularly what we’re doing on energy prices with strategic oil reserves.”
“And also the work we are doing to establish a price ceiling on Russian oil and avoid possible future increases in oil prices,” he added.
Asked whether reducing inflation was more important than the risk of a recession raised by higher interest rates, Ms Yellen said she believed it was appropriate to make reducing inflation the top priority as the labor market “is extremely strong today”.
Source: Capital
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