Janet Yellen says restrictions on Moscow have a “huge” impact on America’s soaring food and energy prices
The US sanctions have a “huge” impact on the rising food and energy prices at home, Treasury Secretary Janet Yellen has said.
Yellen was asked during the New York Times’ DealBook DC Policy Forum on Thursday if already soaring US gas prices would continue to increase.
“It’s unlikely that gas prices are going to fall anytime soon,” Yellen replied.
The issue could also be linked to the rising oil prices. “Europe is trying very hard to free themselves from dependence on Russian oil, and our sanctions on Russia… are making a huge difference to food and energy prices,” Yellen said.
“I think our sanctions have been remarkably effective. However, we are continuing to tighten our sanctions and the oil price could rise further [up].”
She stated that US economic growth will slow down. “but there’s nothing to suggest that a recession is in the works.”
Yellen’s comments came two days after she told the Senate that the US has been experiencing “unacceptable levels”Inflation
Following Russia’s launch of its military operations in Ukraine late February, many countries (including the US) have placed increasing sanctions on Moscow.
While the White House had banned Russian oil from March, the EU pledged to eliminate Russian gas completely by 2030. The EU also announced that it would ban all Russian oil shipping by sea by next week. The Russian oil pipelines were permitted to be used by Hungary and the other countries heavily dependent upon Russia’s energy.
Joe Biden, the US president, spoke to reporters March 23rd. He called the high prices of gas in America “high gasoline prices”. “the Putin price hike,”Referring to the Russian leader.
Russia attacked the neighboring state in late February, following Ukraine’s failure to implement the terms of the Minsk agreements, first signed in 2014, and Moscow’s eventual recognition of the Donbass republics of Donetsk and Lugansk. French and German protocols were created to grant the regions that had broken away special status in the Ukrainian government.
Since then, the Kremlin demanded Ukraine declare itself neutral and vow to never join NATO’s military bloc. Kiev maintains that Russia’s offensive was not provoked and denies claims that it planned to seize the two republics.
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