Treasury Secretary Janet Yellen Warns Gas Prices Could Spike This Winter

Since breaking a record in June, the average gas price in the US has been steadily declining, bringing some much-needed relief while inflation stays close to 40-year highs. However, if crude prices increase as a result of the imposition of European sanctions, American drivers may very well notice a difference.

When asked if gas prices would increase once more in 2022 on CNN’s “State of the Union,” she responded, “It’s a risk.”

As a partial European restriction on the import of Russian crude oil takes effect, there is a chance that US gas prices at the pump will increase once more this winter, according to Treasury Secretary Janet Yellen.

The European Union enacted a set of measures in June that will prevent the import of Russian crude oil by sea beginning on December 5 and petroleum products beginning on February 5 of 2023. Additionally, the sanctions prohibit EU firms from offering finance, insurance, or brokerage for Russian oil shipments to other nations.

The European Union will mostly stop purchasing Russian oil this winter, according to Yellen’s statement on Sunday. The provision of services that allow Russia to ship oil by tanker will also be prohibited.

Reaching a record high in June, the national average price of gasoline has been steadily declining.

According to estimates from the Treasury Department, a prohibition on insurance for Russian seaborne supplies may result in the removal of up to five million barrels per day of oil and refined products from the market, leading to a sharp increase in prices.

Yellen also affirmed her trust in the Federal Reserve’s ability to decide the appropriate course of action to prevent an economic downturn during the Sunday interview. When the Fed tightens monetary policy to combat inflation, she said, a recession is “a concern,” adding, “it’s clearly a risk that we’re monitoring.”

Yellen asserted that when Joe Biden became president of the United States in 2021, the American economy was already in poor shape.

Growth has slowed a bit, but that is to be expected.

Yellen expressed her optimism regarding the American economy. She claimed that the US economy is not in a recession but rather in a period of transition in July. The treasury secretary stated that “We’ve got a solid, strong labor market, and I believe it’s doable to retain that” despite rising food and energy costs.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing