With the Federal Reserve raising interest rates to the highest level since the 2008 financial crisis, the White House is trying to find a way to combat inflation without pushing the country into a widespread recession.
“I think there’s a way through this,” Treasury Secretary Janet Yellen In an interview with the Atlantic newspaper Thursday. “I think a blanket recession is a period of extreme unemployment. You don’t have a strong job market. We have one of the tightest job markets right now.”
Yellen predicts that inflation will finally be under control next year.
“There are risks. The Russian invasion of Ukraine is not over. We are seeing Putin arming oil and gas,” Yellen said. “We will remain vulnerable to supply shocks.”
Yellen monitors where Russia’s oil reserves will be distributed on the world market as the United States attempts to consolidate its energy capabilities.
“Russia is now very actively seeking places to sell its oil. They are offering huge discounts to China and India, who are big buyers,” Yellen said.
In building a clean energy future, Beijing remains an obstacle, despite a bipartisan CHIPS law spurring more confidence in Domestic semiconductor manufacturing.
“There are rare earth elements, solar panels, batteries, and electric battery components that we rely heavily on in China,” Yelin said.
In order to achieve a smooth transition to clean energy, Yellen says the United States needs to ensure that “communities that depend and depend on fossil fuels are not left behind.”
Biden allocated a record $360 billion in Inflation reduction law for climate change measures. The White House must now plan for a green energy transition to the entire nation.
“This is important because I really think it’s contributed to the polarization in the country that, especially the coasts, enjoy rapid growth,” Yellen said. “Of course, with home prices in these areas, they don’t have it that easy.”
over the past year, Mortgage rates doubled, And the 30-year fixed-rate mortgage exceeds 6% for the first time since 2008.
According to a new Fox News poll, 78% of voters said inflation has caused financial hardship. And 59 percent of voters are “extremely” concerned about inflation and price hikes.
As the Federal Reserve warns that Americans will have to put up with higher unemployment and higher interest rates, this is a waiting game before consumers can feel economic relief.