Sunday October 3, 5:10 PM EDT
<<<<NEW YORK (Reuters) - The recent spike in oil prices has had some negative impact on the U.S. economy, but the futures markets suggest that this will be a temporary phenomenon, a top Fed official said on Sunday.
With a barrel of crude oil hovering near $50 a barrel analysts have grown increasingly concerned about a potential slowdown in consumer spending.
"Clearly the rise in oil prices has had some chilling effect on the economy and undoubtedly contributed to some of the slowness that we saw in the middle of the year," said Mark Olson, a Governor of the Federal Reserve Board.
But he added that climbing energy costs had yet to translate into worrisome inflation pressures.
"With the slack in the economy, we're not feeling inflation pressures at the moment," he said.>>>>>
Dieel prices are @ 2.15 here in the NE. At some point, regardless if this rise continues, the "pressure" will be felt. Whenever I truck or operate equipment that has a diesel engine, and am paying these high fuel costs, I will be passing the fuel costs onto my clients bill. This is only one aspect of rising fuel costs. So many manufacturing products are "oil" related. Inflation is coming upon us. With its finite supply being realized, oil rich countries are grabbing the extra money from each and every barrel. We may re-trench in the Price of Oil, but I can't see that it will last.
K
AI
