Other alternatives are being contemplated, she said, including forming a type of “buyers’ cartel” that would cap the price of oil allied countries are willing to pay for Russian oil.
“A lot of people, including me, find it appealing from a general economic point of view, but actually making it operational is challenging and all of these issues haven’t been worked through,” she said.
As for the US economy, Yellen said the Fed faced a difficult challenge in trying to bring down inflation without provoking a recession. She reiterated her view that “it requires both skill and luck.”
“It’s conceivable there could be a soft landing,” she said. “But this is a very difficult economic situation. Not only with the supply shocks that we’ve had but with the war continuing, with sanctions continuing to be applied. We may face more inflationary risks to the global economy.”
This article was provided by Bloomberg News.