(Reuters file photo)
[Compile Wei Guojin/Comprehensive Report] In the past few weeks, the central banks of various countries are still trying to figure out how to deal with the financial turmoil caused by the banking crisis. High oil prices could pose a challenge to previous efforts to curb inflation.
U.S. Treasury Secretary Yellen criticized OPEC+'s decision to cut production unexpectedly as "unconstructive behavior" that will add uncertainty to the global economic outlook and increase the burden on consumers.
If the oil price trend reverses, it will be unfavorable to fight against inflation
She said that although it is too early to assess the impact of oil prices on inflation, "I think the OPEC+ decision is regrettable and very unconstructive at a time when it is important to keep energy prices down"; The price has fallen from the highest point last year, which has effectively curbed inflation. If the oil price trend reverses, it will be unfavorable to fight inflation.
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After reaching a reduction of 2 million barrels of crude oil per day half a year ago, OPEC+ announced on the 2nd that it will further reduce crude oil by 1.66 million barrels per day from May.
International oil prices jumped more than 6% on Monday, the biggest gain in a year, raising concerns about supply tightening; oil prices continued to climb on Tuesday, with WTI and Brent up more than 1% in intraday trading, with the former at 8.8% a barrel. eleven.
Three dollars, the latter at eighty-five.
eight dollars.
Joe Biden: It won't be that bad
Yellen said, "Obviously, this is not a positive move for global growth. It will add uncertainty to the global economic outlook when inflation is still at a high level." as bad as I thought.”
St. Louis Federal Reserve President Bullard, seen as a hawk on the Federal Reserve (Fed), said that with China's recovery likely to be faster than expected in the first half of this year and Europe emerging from the risk of recession, oil prices were expected to rise, but OPEC+ surprised them. Production cuts may further push up oil prices; "Oil prices fluctuate from time to time and are difficult to track precisely, but some fluctuations affect inflation, making our work to curb inflation more difficult."
Europe and the United States may further raise interest rates
The rising cost of oil prices may once again put pressure on overall prices, forcing the European Central Bank (ECB), Bank of England (BOE) and the Federal Reserve to further tighten monetary policy.
Bet the Fed will raise interest rates in May ○.
The probability of 25 percent has risen to 63.
3%, compared to 55% last Friday before OPEC+ announced production cuts; traders also increased their tightening bets on BOE and ECB, pricing the highest interest rates at four.
Sixty-nine percent, three.
Sixty-three percent.
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