Treasury Secretary Janet Yellen said the recent rise in oil prices is unwanted but should stabilize over time, with the US economy still on track for a soft landing.
Market expectations indicate that oil prices will “stabilize and come down” over time, Yellen said in an interview with MSNBC on Tuesday, adding that this was her own hope and expectation as well.
Benchmark Brent crude oil topped $95 a barrel for the first time since November on Tuesday. Yellen said the increase partly reflected an earlier decision by Saudi Arabia to maintain oil production cuts, and also the economic recovery, albeit slower than expected, from pandemic lockdowns in China .
“We’re really on track for a soft landing,” he said of the U.S. outlook. Yellen reiterated that the labor market is strong, inflation is coming down and there is “a lot of momentum” in the economy.
The Treasury chief reiterated that there is no reason for Congress to impose a federal government shutdown by not enacting appropriations for the new fiscal year that begins Oct. 1. He said the Treasury has not modeled the impact of a shutdown on the economy, which would depend significantly on how long it lasts.
