US sanctions against Russia are having a “huge” impact on the rising food and energy prices at home, Treasury Secretary Janet Yellen has conceded.
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.
She later added that the issue is tied to global oil prices, which have also been rising. “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. But we continue to tighten them, and oil prices could go further [up].”
She said that the growth of the US economy will slow, “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” of inflation.