U.S. Treasury Secretary Janet Yellen said on the 11th that the European Union (EU) ban on Russian oil imports “has the potential to cause a surge in oil prices”.
Secretary Yellen appeared on CNN on the same day, and when asked if the American public should be prepared for the fall in oil prices that could rise again in winter, he replied, “That is the risk that the Russian oil price cap is trying to solve.”
“This winter, the EU will suspend most of its purchases of Russian crude and will also ban the provision of services that make it possible to transport Russian crude via tankers,” he said. It is designed to lower the price of crude oil internationally by reducing imports from Russia, which is used for oil production, while at the same time maintaining the supply of Russian crude oil,” he said.
“We’re trying to implement this to avoid skyrocketing oil prices in the future,” she continued.
The EU is scheduled to implement an embargo on Russian crude oil in December, and seven major countries (G7) including the United States will implement price caps on Russian crude oil and petroleum products at this time, and details are being coordinated.
When asked about the possibility of a recession because of the Federal Reserve’s sharp hikes in interest rates, Yellen said, “That’s the risk of the Fed tightening monetary policy to tackle inflation. “We are monitoring this risk,” he said.
“Economic growth is slowing, but this is natural considering we were in a difficult economic situation when Joe Biden took office,” he said. “The market is still strong,” he said.
Regarding the possibility of an economic soft landing, he said: “For a soft landing that lowers prices while maintaining a strong labor market, the Fed needs great skill as well as luck. I believe there is a way to achieve this.”