Yellen: Inflation in America is our top priority, and it is impossible to isolate ourselves from oil market shocks
The US Treasury Secretary said in her testimony in front of the US Senate Finance Committee today, Monday, June 6, that the issue of inflation is her first priority.
Yellen said: The US economy is facing unacceptable levels of inflation, and there must be an appropriate position in the budget to help alleviate inflationary pressures without undermining the economy.
She added: When I expected inflation to be temporary, I did not expect the variables of Corona, supply chain shocks, and the war in.
“We are facing macroeconomic challenges at the moment, including headwinds related to disruptions caused by the pandemic’s impact on supply chains, as well as repercussions of disruptions to supply levels for oil and food markets due to the war between Russia and Ukraine.”
Moreover, Yellen stressed that the Federal Reserve plays an important role in reducing inflation.
With regard to developments in the oil market, the former chair of the Federal Reserve made it clear that it is impossible for the United States to isolate itself from shocks in oil markets, such as those caused by the war between Russia and Ukraine.
In addition, She indicated that oil production in America declined during the epidemic, as producers did not expect an increase in demand and a strong recovery.
She also stressed that US officials are keen to maintain the flow of Russian oil to the global market to push prices down and avoid a sharp increase that might cause a global recession.
