Finance Minister Janet Yellen rejected any idea that the Federal Reserve and her colleagues should raise their inflation targets, given the importance of stable price expectations at a time when the cost of living is rising.

“I do not see this as a reason for change,” Yellen told reporters in Bonn, Germany, on Thursday. “The challenge is to meet the inflation targets.”

U.S. consumer prices have risen more than 8% per annum over the past two months, and some economists doubt the Fed will be able to cut profits to 2% over the years. This, in turn, has spurred speculation that the Fed may be needed to advance its target.

Yellen is in Bonn, where he participates in meetings of finance ministers and heads of central banks of the G7 countries with developed economies. She said at a meeting on Thursday that the group’s key message was that it would “support” Ukraine with a new commitment to support.

The US Senate on Thursday approved a $ 40 billion aid package to Ukraine. Of this amount, according to Yelen, Kyiv will receive $ 7.5 billion in “pure economic support in the form of grants.”

“Buyer’s Cartel”
Other G-7 countries are expected to contribute about the same amount to the aid plan, which will be announced on Friday after the Bonn meetings.

German Finance Minister Christian Lindner said on Thursday that his country would contribute 1 billion euros ($ 1.1 billion).

“While we were walking around the table, I can tell you that there were general expressions of support,” Ellen said of the meeting of finance ministers. “We have all promised to do what is necessary.”

The Finance Minister said that the officials also discussed ways to limit Russia’s oil revenues while minimizing the impact on energy prices. The United States has already banned oil imports from Russia, and European Union countries are seeking to do the same, gradually over the next year.

“The goal is to get some of Russia’s oil into the market to keep world prices down so that we don’t have unjustified negative consequences,” Ellen said.

Other alternatives are being considered, she said, including the creation of a “cartel of buyers” that would limit the price of allied countries willing to pay for Russian oil.

“Many people, including me, find it attractive from a general economic point of view, but in fact it is difficult to put into operation, and all these issues have not been resolved,” she said.

As for the U.S. economy, Yellen said the Fed faced a difficult challenge in trying to bring down inflation without provoking a recession. She reiterated her opinion that “it requires both skills and luck.”

“It is possible that there may be a soft landing,” she said. “But this is a very difficult economic situation. Not only because of the supply shocks that we had, but also with the continuation of the war, with the continuation of the application of sanctions. We may face additional inflationary risks for the global economy. ”

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