“Saudi Arabia had a big surprise for the world on Sunday. Along with a few other countries, it revealed it is cutting oil production. That is pushing prices up sharply. NPR's Camila Domonoske is here to explain why this is happening and what it may mean for all of us. Hey, Camila.” “ Oil markets shuddered after a surprise announcement this weekend that Saudi Arabia and other oil-producing countries would cut their output of crude oil, potentially pushing up gas prices just as millions of Americans hit the road this summer. With the price of Brent crude, the international oil standard, jumping about 6% to $85 a barrel on Monday, motorists should expect prices at the pump to rise between 5 cents and 15 cents per gallon within the next two weeks, analysts told CBS MoneyWatch. By summer, the average national price for regular gas is likely to be around $4 a gallon.” Here's what OPEC's shock oil production cuts mean for U.S. gas prices
You people would mitigate a depression if it helps the clown you voted for in the last elections. So, the inflation is still ridiculously high and it ONLY INCREASED slightly more, so that's good news? Tell us when the "transitory" inflation subsides back to 4 years ago levels, then you'll have some good news to crow about.
Check back in when you have an understanding of what’s going on. I suggest an intensive immersion in Bloomberg TV and CNBC. For you it will probably take a year before you are up to speed much longer/never if you also watch Faux business or listen to AM radio.
I would agree that the proposed cut in OPEC production has probably been a factor the impact has been relatively small at this point. Speaking of cutting production and the price of gasoline at the pump this was probably a significant factor in the increased price of gas at the pump in 2021 and early 2022. Oil Nations, Prodded by Trump, Reach Deal to Slash Production (Published 2020)
Krugman: Fed's inflation measures are flawed, it's already won fight Krugman argues that the inflation fight may already have been won due to the lagging and imprecise nature of the feds inflation metrics. I suspect he is right. Month over month inflation has dropped, and really the only thing pushing it up is CPI rents, and real rents have been falling for about 6 months. Having said that, I prefer a better safe than sorry approach with inflation, and lean more towards squashing it until it is clear it has been beaten.
LOL. Yeah no, maybe a pause with neutral forward looking language. A few are pricing in a cut late this year but very optimistic
Time to tap the brakes. No more increases. Talking with major auto dealer with dealerships in Florida, ohio, and arizona, national builders, national trucking exec, and major regional development groups, the message is the same that the soft landing is on the near term horizon.
Can't we all agree that drops are good regardless of who the POTUS is? We eat a lot of eggs. My 12 year old son can down a dozen a week himself if left to his own devices.
In the 70’s it went up and down a lot, and the fed never really put it to bed until Volcker came in. I would prefer to err on the side of caution, because we don’t want it to pop back up. Given the economy is still good and unemployment still very low I need no need to start dropping rates yet.
I think the best course is to hold rates where they are for a while and let everything adjust to the higher rates.
Yes, no need to keep raising them, just hold them steady and let us work out what prices need to be based on that, not all of this guessing about what is going to happen to the rates next month.
There’s no right and wrong here. Just opinions based upon hypothetical projections. Month to month inflation has lowered, but reported year over year inflation, the official measure, is still high. Reported inflation to a degree is factored in to wages and pricing decisions. Wage inflation is still higher than average. Demand and employment are still strong. Gas prices have just increased going into summer demand period. It’s too soon in my mind to declare victory, even though it is entirely possible the game has been won. If the economy was dramatically slowing and shedding jobs I’d probably agree with you. The consequences of not squashing inflation are more serious that a potential recession. Recessions are part of the normal business cycle. I think it’s important for the fed to signal they are in this fight until the job is complete.
I noticed we didn't get an April CPI update from our friend @WarDamnGator . I hope he's doing alright. I wonder if it has anything to do with the fact month over month inflation spiked back to 0.4% for April. Anyway, I'm sure it's just a coincidence. I wish would could escape this inflation problem, but ole Biden needs more time. The 3 naps a day sure aren't helping matters much, though. Let's go Brandon!
Perhaps you could escape this inflation problem in the UK, Germany, France, or Italy. Oops no it's worse. Well try Sweden, Denmark, Mexico, or India. Nope. Guess Biden has created that problem all over the world. Derp.
Pffttt ... it's hardly even a story anymore, inflation is dropping like a rock and the FED is hinting they are done raising rates ... 0.4 is great after it spent almost 18 month above 0.4.... Sorry about your lose, I know you are praying for bad news.
What indicators are you seeing that show inflation is dropping like a rock? April's CPI is a sharp increase month over month. 0.4% annualizes at 4.8% which is not good considering we've already had two years of really bad inflation under Joe Biden.