We will monitor prices and expect them to “stabilize”

On CNBC’s “Squawk on the Street” Monday, Treasury Secretary Janet Yellen responded to a question about what steps the Biden administration might take to combat rising oil prices by saying that She would continue to monitor the situation, but expects prices to fall. “stabilize.”

Co-host Sara Eisen asked, “I’m wondering what you think about the gas price trend, a big spike in August. Crude has returned above $90 per barrel. The Saudis extend production cuts until the end of the year. Are you considering taking action on this front?

Yellen responded: “Well, the president wants to make sure gas prices remain affordable for Americans. Americans care a lot about the price of gasoline. They are still down $1.20 from their highs last summer, although they have been rising recently. China has ended pandemic-related lockdowns and, although Chinese growth is slower than expected, China’s return and continued production cuts by Saudi Arabia have pushed prices up somewhat petrol. We are monitoring the situation very closely. The president has taken action over the past year. Certainly, oil releases from the Strategic Petroleum Reserve have played an important role in maintaining oil prices and we will continue to monitor this closely.