Janet Yellen, treasury secretary of the United States of America, says the country is considering fuel tax cuts as an option to provide relief to consumers.
Yellen disclosed this on Friday, while speaking at the Mi Casa Resource Center in Denver, Colorado.
The development comes amid a recent surge in oil prices following sanctions against Russia over the invasion of Ukraine.
Earlier in March, the national average price for a gallon of regular gasoline in the US was over $4 — the highest price recorded in 10 years.
Advertisement
Yellen, however, said she was confident that the country’s economy would perform well in 2022.
“We’re looking at a range of things that we might do to relieve consumers. The gas tax is one of the things on the list,” Yellen said.
She, however, added that there were concerns that reducing the fuel tax could cause benefits to flow to oil companies and not to consumers.
Advertisement
Yellen also said a tighter monetary policy to fight inflation could cause a recession, adding that the federal reserve should be able to balance its dual mandate for maximum employment and price stability.
“I have confidence in the Fed to get inflation under control without causing a recession. And I see a good strong economy that, even with inflation and the problems that the Russia-Ukraine situation is causing, I believe the economy will do well this year.”
Yellen further spoke on the US dollar reserve currency status and how it has enabled powerful sanctions against Russia.
She expressed confidence when asked if the dollar could lose some of its global clout due to efforts by Russia and China to find alternative ways to do business, adding that there was no serious competitor to the dollar.
Advertisement
“There really is no other currency that I think can rival it as the reserve currency, and creates the ability to impose very strong sanctions,” Yellen said.
“China has engaged in searches, Russia has as well, but it’s really not come close to inventing any kind of substitute for the dollar.”
Add a comment
