Biden officials worry that Russia’s sanctions will hit the US economy as well

Bloomberg reported that officials in President Joe Biden’s administration are admitting that his sanctions on Russia inadvertently caused economic damage to the US.

After Russia’s invasion of Ukraine, the US banned Russian oil imports, forbade US companies from doing business with Russian rights, and sanctioned dozens of individuals.

Bloomberg reported that at the time, the Biden administration predicted that the impact of those sanctions on the US would be minimal – if it could ensure they did not affect US food and energy security.

However, rising energy and food costs have become the two main drivers of inflation in the US, which hit a 40-year high this month.

According to Bloomberg, Treasury Secretary Janet Yellen privately believes the price hike is a result of what the outlet called unexpected “self-clearance”, referring to US companies leaving Russia altogether. To reduce the risk of violating US regulations. Yellen said on June 7 that she was “wrong” to say that inflationary pressures would end.

The White House did not immediately respond to an insider’s request for comment.

Bloomberg reported that in an effort to combat economic uncertainty, the Biden administration is now quietly encouraging some US businesses in the agriculture and shipping sector to buy and carry more Russian fertilizer.

In late May, the Treasury Department also extended a license so that US companies could continue to do business with Russia until September 30, unless it was with approved entities, so that the US could continue to receive taxes, duties and imports. . Obligation.

Bloomberg reported that some Biden administration officials also worry that sanctions on Russia are not stopping Ukraine’s invasion and are instead fueling inflation, exacerbating food insecurity and punishing ordinary Russians.

Bloomberg reported that US officials were initially impressed that several major companies such as BP and McDonald’s pulled out of Russia, but are now concerned with knock-on effects such as supply-chain disruptions.

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Biden officials worry that Russia’s sanctions will hit the US economy as well

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(Except for the headline, this story has not been edited by News East India staff and is published from a syndicated feed.)