Fox Business host Larry Kudlow blasted Federal Reserve Chairman Jerome Powell for what he said was “one of the goofiest answers” regarding oil prices Wednesday.
Powell spoke at a press conference after the Federal Reserve did not increase interest rates, but left them at a 22-year high, where he was asked by Fox Business reporter Edward Lawrence about rising oil prices, and said that rising oil and gas prices affected consumer sentiment.
“Oil prices are heading to $100 a barrel, gasoline moving back to $4 a gallon, top line inflation has been going up, not down in recent months because of the oil shock,” Kudlow said prior to playing the exchange between Lawrence and Powell.
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“The Federal Reserve has a history of accommodating or monetizing oil shocks especially in the 1970s but also including the early 2000s. So now the latest shock is a fed challenge,” Kudlow continued. “However, today at his press conference Fed head Jay Powell never mentioned the oil shock, except when our great reporter Edward Lawrence asked a question about it. Now take a listen, please, to one of the goofiest answers you’re ever going to hear on this subject.”
A barrel of Brent crude oil costs $93.17, according to OilPrice.com.
“Energy prices are very important for the consumer. This can affect consumer spending. It certainly can affect consumer sentiment,” Powell said in response to Lawrence’s question. “Gas prices are one of the big things that affects consumer sentiment.”
“World oil prices have basically doubled in round numbers from $50 a barrel to nearly $100 a barrel,” Kudlow said after playing the clip. “It hit $125 at their peak last year. Along the way, gasoline has increased 52% and then various energy derivatives have exploded for example, motor fuel up 52%, electricity up 25%. Let’s not forget groceries plus 20% because oh, oil prices hit fertilizer, fertilizer hits food.”
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President Joe Biden cancelled oil leases in Alaska granted late in the Trump administration, according to CBS, while proposing new regulations to limit energy production. Economic and energy experts have criticized Biden’s hostility to fossil fuel production, which some claim have caused higher energy prices.
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