Washington Watch: Inflation seen restraining Biden, other G-7 leaders as they consider more Russia sanctions at summit

by | Jun 24, 2022 | Stock Market

High inflation will limit President Joe Biden and the leaders of other advanced economies as they consider further sanctions on Russia in response to its ongoing war on Ukraine, said one expert ahead of next week’s Group of 7 summit. “Ukraine is going to loom large, and the big question is around whether this group is going to be able to take forward the sanctions,” said Matt Goodman, senior vice president for economics at the Center for Strategic and International Studies, a think tank in Washington, D.C.

“There’s some question as to whether President Biden is going to be willing to take on substantial new sanctions,” Goodman added, as he spoke Tuesday at a CSIS press briefing previewing the upcoming G-7 and NATO summits. Existing sanction are “contributing to the inflationary pressures that we’re facing here in the U.S. and in the rest of the advanced world,” so it remains to be seen “whether there will be any further efforts by this group,” he said, according to a CSIS transcript. To the extent that G-7 leaders take further action, they likely will consider measures that don’t add to price increases, and that’s where an Italian proposal might have a role, Goodman said. Italian Prime Minister Mario Draghi has proposed establishing a new cartel of oil

consumers in an effort to cap prices. It’s not clear, ho …

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