Perhaps the single best piece of economic news in 2005 was that record-high energy prices did not spill over into the rest of the economy. While the Fed can be relaxed about inflationary risks in the U.S. economy, its role is to preempt.
Natural gas prices are going to go through the roof in the next couple of months, and that is going to hurt a lot of families.
Record-high energy prices did not spill over into the rest of the economy.
There is beginning to be evidence that high energy prices are starting to spill over into the rest of the economy.
Even before the hurricane hit, rising energy prices were having a dampening effect on the economy,
This is an economy where airlines are paying record prices for jet fuel, and yet it is very hard to pass through those costs.
The big uncertainty is how much of a hit the housing marketing will take. Is it going to be a hard landing or a soft landing? I worry about that much more than I worry about high fuel prices right now.
These high energy prices are beginning to spill over into the rest of the economy. Finally, airlines are able to raise ticket prices and hotels are able to raise room rates and on and on.
The main thing is cost-savings which radiate out in the form of lower prices for high-tech goods, and higher profit margins for the companies,