Yellen Criticizes Oil Output Cut, Downplays Dollar Strength: FT

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(Bloomberg) — US Treasury Secretary Janet Yellen said the decision by Saudi Arabia and its OPEC+ allies to cut oil output was inappropriate and harms the global economy, reinforcing the Biden administration’s strong criticism of the move. 

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Speaking ahead of the IMF and World Bank’s annual meetings in Washington this week, Yellen expressed concern that the tightening of crude supplies, and the potential for higher energy prices as a result, will pose a particular threat to emerging markets. 

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“OPEC’s decision is unhelpful and unwise,” Yellen told the Financial Times. “It’s something that, to me, did not seem appropriate, under the circumstances we face.”

Yellen also downplayed concerns about the strength of the dollar and the recent increase in market volatility, adding that her team is monitoring currency movements closely.

“We continue to think that markets are functioning pretty well and are generally appropriate given the underlying differences across countries and policies and economic situations,” she said.