Janet Yellen calls OPEC+ move ‘unhelpful and unwise’ for global…

Janet Yellen calls OPEC+ move ‘unhelpful and unwise’ for global…


US Treasury Secretary Janet Yellen has criticized the decision to cut the supply Organization of Petroleum Exporting Countries OPEC and his allies, known as OPEC+and called it “unhelpful and unwise” for the global economy.

What happened: Yellen, in an interview with the Financial Times, said OPEC+’s move to cut production by 2 million barrels a day is particularly damaging to emerging economies already grappling with high energy prices.

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“It’s uncertain what impact it will end up having, but it’s certainly something that I didn’t feel appropriate given the circumstances we’re facing,” Yellen said the Financial Times. “We are very concerned about developing countries and the problems they face.”

Why it matters: Yellen’s comments come just ahead of the annual meetings in IMF and the world bank, where talks will mainly focus on high inflation and commodity prices, the war in Ukraine and the impact of central bank actions.

“I think we’re going to exchange views on whether our countries are tackling these issues and try to consider whether our collective response will result in something sensible,” Yellen told the FT.

On dollar strength: Yellen said the dollar’s strength was mainly due to differences in macroeconomic fundamentals across countries. “In the case of the US, it’s safe-haven inflows that respond to geopolitical tensions and different speeds of monetary tightening,” she said.

“We continue to believe that the markets are performing fairly well and are generally reasonable given the underlying differences between countries, politics and the economic situation,” Yellen added.

Price promotion: Oil prices have risen since the OPEC+ announcement. That United States Brent Oil Fund BNO and the Vanguard Energy Index Fund ETF VDE each gained over 9% in five days.

Continue reading: Putin aided by Saudi Arabia in his ‘despicable’ Ukraine war, Schumer says as anti-oil…

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