Yellen: Another oil price drop could spill over into global economy
- 8 years ago
Federal Reserve Chair Janet Yellen says if oil prices drop again the economic pain felt in crude-exporting nations and by oil companies could spill over into the “rest of the global economy.”
In a speech outlining economic risks on Tuesday, Yellen counted the plunge in oil prices, which have dropped 64 percent in nearly two years, as one of two broad downside risks that could weigh on worldwide growth.
Low crude prices, she said, could boost U.S. spending and economic activity over the next few years but oil exporters would likely curb government spending and oil companies would continue to shed jobs.
In a speech outlining economic risks on Tuesday, Yellen counted the plunge in oil prices, which have dropped 64 percent in nearly two years, as one of two broad downside risks that could weigh on worldwide growth.
Low crude prices, she said, could boost U.S. spending and economic activity over the next few years but oil exporters would likely curb government spending and oil companies would continue to shed jobs.