Yellen Says Federal Gas Tax Holiday "Worth Considering”

Yellen Says Federal Gas Tax Holiday "Worth Considering”

United States Treasury Secretary Janet Yellen said that a federal gas tax holiday is “worth considering” — and that a recession is not “inevitable” — in an appearance on ABC’s “This Week” on Sunday. 

In Rhode Island, House Speaker Joe Shekarchi, Senate President Dominick Ruggerio, and Governor Dan McKee all have rebuffed calls to halt the state gas tax. 

Connecticut suspended its gas tax in March.

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As GoLocal reported earlier in June, former Rhode Island Governor — and current U.S. Commerce Secretary Gina Raimondo — is being eyed to replace Yellen, as inflation continues to skyrocket. 

 

Gas Tax

At the federal level, some lawmakers have proposed a gas tax holiday, as the average price of gasoline is now around $5 per gallon.

“That’s an idea that’s certainly worth considering,” Yellen said on Sunday, when asked if the administration is weighing the option. 

Yellen added that President Joe Biden wants “to do anything he possibly can to help consumers.”

 

Economic “Big Picture”

Overall, Yellen said consumer spending in the U.S. remains strong, saying that spending behaviors are changing with rising food and energy prices. 

“I expect the economy to slow,” said Yellen on Sunday. “It’s been growing at a very rapid rate and the economy has recovered and we have achieved full employment. We expect a transition to steady and stable growth, but I don’t think a recession is at all inevitable.”

Yellen said household savings during the coronavirus pandemic should help sustain spending. The national saving rate has fallen to roughly 6%, below pre-pandemic levels, after reaching 16.6% in 2020.