Yellen predicts ‘much lower inflation’ by end of 2023, sees risk of recession

This post was originally published on this siteTreasury Secretary Janet Yellen said on Sunday predicted a significant reduction in inflation by the end of 2023, while also noting the continued risk of a recession. “I believe by the end of next year you will see much lower inflation if there’s not … an unanticipated shock,” […]

Ukraine strikes hotel housing dozens of Russian soldiers

This post was originally published on this siteUkraine’s military struck a hotel complex housing dozens of Russian soldiers in the occupied city of Melitopol on Saturday night, reportedly using long-range artillery supplied by the United States. Ivan Fedorov, the exiled mayor of Melitopol, said in a Telegram post that the hotel complex was housing up […]

Sinema leaving the Democratic Party and registering as an independent

Arizona Sen. Kyrsten Sinema is leaving the Democratic Party and registering as a political independent, she told CNN’s Jake Tapper in an exclusive TV interview.

Repeal of military vaccine mandate shows changing pandemic politics

This post was originally published on this siteThe elimination of the Pentagon’s COVID-19 vaccine mandate as part of the defense policy bill represents a surprise concession by Democrats, and shows how the politics of the pandemic have changed. Vaccine mandates have been championed by the Biden administration, congressional Democrats and blue state governors as an […]

Biden White House warns against ‘disastrous consequences’ as Congress barrels toward government funding deadline

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Gas is now cheaper in the U.S. than it was a year ago, for better or worse

The average price of U.S. gasoline fell to $3.33 a gallon on Thursday, according to AAA, making gas cheaper now than it was a year ago — and much cheaper than over the summer, when prices spiked to just above $5 a gallon, The New York Times reports.
BREAKING: Gas prices in the US are now lower than they were a year ago, before Russia’s invasion of Ukraine. pic.twitter.com/VEDhy3SDen— Nick Knudsen 🇺🇸 (@NickKnudsenUS) December 8, 2022
Lower gas prices are good news for consumers, at least those who drive gas-power cars, since they will have more money to spend over the holidays. But it’s a mixed bag for the economy, because it reflects lower worldwide demand and could give the Federal Reserve a spot of heartburn.
“It’s good for households and it’s good for affordability,” S&P Global chief U.S. economist Beth Ann Bovino tells the Times. “But at the same time the easing up of pricing pressure at the gas pump leaves more money to spend elsewhere, that might give a near-term boost to inflation, which the Fed would have to fight.”
The main driver of the cheaper gas is the drop in crude oil prices, as global oil prices account for more than half the cost of a gallon of gas (the rest is refining costs, gas station profits, and gas taxes, mostly). Oil prices have plummeted about 20 percent since August. Brent Crude, the global benchmark, has dropped to $78 a barrel, its lowest level this year, and West Texas Intermediate, the main influence on U.S. gas prices, is down to $72 a barrel.
The fall in oil prices is tied to a COVID-related falloff in demand from China, the world’s largest net oil importer, and possibly an EU-U.S $60-a-barrel cap on Russian oil exports. Geopolitical events are will remain a wild card. But gas prices are also seasonal — winter blend gas is cheaper to refine because it has fewer environmental restrictions, AAA spokesman Devin Gladden tells the Times — and prices at the pump typically rise in January after a December lull.

Car Dealers Prepare for Softening Demand as Uncertain Outlook Looms

This post was originally published on this siteA survey of 1,000 dealers shows their outlook on the market is the lowest it has been in five years.

House panel wants answers from Bankman-Fried on FTX collapse

This post was originally published on this siteHouse lawmakers have dozens of questions for former FTX CEO Sam Bankman-Fried, whose cryptocurrency empire went bankrupt last month amid allegations of fraud. The first one is whether he’ll actually show up to answer them. The leaders of the House Financial Services Committee are pushing Bankman-Fried to testify […]

Economists: A US housing recession has already arrived

This post was originally published on this siteThis has been a year of watershed moments in real estate, and not the good kind. The Housing Market Index, a closely watched industry metric that gauges the outlook for home sales, declined to 33 in November on a hundred-point scale, its lowest level in a decade, save for the […]

Beef shortage looms, Florida citrus in peril: US farms hit by climate change effects in 2022

This post was originally published on this siteDrought imperils Texas farmers’ ability to breed cattle. Hurricanes threaten Florida’s iconic citrus. Experts tie the troubles to climate change.

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Author: Jillian