Treasury Secretary Janet Yellen expressed her belief that oil prices will soon stabilize while also emphasizing the Biden administration’s cautious monitoring of the situation. In an interview with CNBC, Yellen stated, “My expectation is that they will stabilize, but we will just have to keep an eye on it.”
After experiencing three consecutive weekly gains, oil prices (CL00, +0.34%) have reached their peak for the year, surpassing $90 per barrel. When asked if any action was being considered by the administration, Yellen emphasized President Joe Biden’s commitment to ensuring affordable gas prices for Americans. She highlighted that despite the recent increase, prices still remain over $1 lower than the summer of 2022.
Yellen attributed the boosted oil prices to China’s reemergence into the market and ongoing production cuts by Saudi Arabia. She emphasized that close monitoring of the situation was currently underway. The Treasury Secretary also mentioned that past releases of oil from the Strategic Petroleum Reserve have played a crucial role in maintaining oil prices at a reasonable level.
Amidst her positive outlook on the economy, Yellen acknowledged the significance of recent economic trends. Inflation is gradually decreasing while the job market continues to display robust health.
When asked about the impact of the United Auto Workers strike against the Big 3 auto companies on the economic outlook, Yellen stated that it was premature to make any concrete forecasts. She concluded by expressing her satisfaction with the current state of the economy, stating, “I’m pleased by what I see in the economy.”