Biden administration officials are divided over how much further the U.S. can push sanctions against Russia without sparking global economic instability and fracturing transatlantic unity, Bloomberg reported, citing sources.
While President Joe Biden’s team rallied behind behind a sanctions plan, the debate is more heated now that Moscow has shrugged off the early economic penalties according to officials familiar with the discussions.
The people, who asked not to be identified discussing internal deliberations, said factions have emerged over how hard to push. One group, which includes many officials at the State Department and White House, advocates even stricter measures known as secondary sanctions, arguing opposition from allies can be overcome.
Another group of officials, many based at Janet Yellen’s Treasury Department, worry about further strains on a global economy already suffering from supply-chain woes, inflation, volatile oil prices and a potential food crisis. Some fret about the looming midterm elections and Democrats’ chances if prices at the pump stay high. They argue for a different, untested approach: a cap on oil prices that would allow countries to buy Russian energy while limiting Moscow’s income.
