US considers tax cut on fuel to bring relief to consumers amid higher prices

No serious competition to US dollar as a reserve currency, Janet Yellen says

US Treasury Secretary Janet Yellen said a tighter monetary policy to fight inflation could cause recession, but the Federal Reserve should be able to balance its dual mandate for maximum employment and price stability. ReutersShow less

A US fuel tax cut is among the options being considered to provide relief to consumers, Treasury Secretary Janet Yellen said on Friday, adding she was confident that the country's economy would perform well this year.

"We're looking at a range of things that we might do to relieve consumers. The gas tax is one of the things on the list," Ms Yellen told reporters on Friday at a social services agency in Denver, Colorado.

However, she added that she had concerns that cutting the fuel tax could cause benefits to flow to oil companies and not to consumers.

She also said that a tighter monetary policy to fight inflation could cause recession, but added that the Federal Reserve should be able to balance its dual mandate for maximum employment and price stability.

"I have confidence in the Fed to get inflation under control without causing a recession. And I see a good strong economy that, even with inflation and the problems that the Russia Ukraine situation is causing, I believe the economy will do well this year."

Commenting on the US dollar's reserve currency status, which has enabled powerful sanctions against Russia, she said there was no serious competitor to the dollar.

"There really is no other currency that I think can rival it as the reserve currency, and creates the ability to impose very strong sanctions", Ms Yellen said, when asked if the dollar could lose some of its global clout due to efforts by Russia and China to find alternative ways to do business.

"China has engaged in searches, Russia has as well, but it's really not come close to inventing any kind of substitute for the dollar," Ms Yellen said.