US Treasury Secretary Warn, Cutting Oil Production Risks Global Economy

Janet Yellen, secretary of US Treasury warned the biggest oil-producing countries in the world that are cutting oil production at a time of rising energy costs is not helpful for global economic growth. Ahead of the meetings hosted by the IMF (International Monetary Fund), Janet Yellen said the move by Opec+, which is the oil production cartel led by Saudi Arabia, is risking the global economy.

The government of the United States has reacted angrily to the decision to cut daily oil production by 2 million barrels, which is more than expected, and described it as a geopolitical move. Janet Yellen said it will risk hurting developing nations more.

According to Janet Yellen, the decision of OPEC is not helpful, and it’s uncertain what impact the decision will end up having, but to her, it is something that did not seem appropriate, under the circumstances they are facing, and they are worried about developing countries and the problems they face.

Janet Yellen added that, they are going to exchange views on whether their nations are addressing these problems, and try to consider whether their collective reaction adds up to something that is sensible in that difficult environment. This week, the IMF is expected to downgrade its growth forecast for the global economy.