Obama’s Fed Policy Fuels $4 Gas
New report reveals how U.S. monetary policy impacts oil price, small businesses
WASHINGTON, May 16, 2012 /PRNewswire-USNewswire/ — In a new analysis released today, Louisiana State University Endowed Chair of Banking and nationally-renowned economist Joseph R. Mason makes the case that there are steps government can take to demonstrably reduce gasoline prices. The report–entitled “Monetary Policy, Gas Prices and the Impact on Small Businesses“–specifically reveals how the Federal Reserve’s commitment to near-zero interest rates affects commodity pricing, including gasoline reaching nearly $4 per gallon, and ultimately impacts American entrepreneurs.
“The Fed’s inflationary bias fuels energy costs,” explained Dr. Mason. “While the White House has backed the Fed’s pursuance of soft monetary policy, it has allowed three years to pass without creating multifaceted energy policy. And consumers are being hit with this one-two punch at the gas pump.“
Small Business & Entrepreneurship Council Chief Economist Raymond Keating said, “President Obama’s claim that rising gas prices are ‘beyond our control’ doesn’t stand up to scrutiny. For example, the Bernanke Fed’s loose monetary policies continue to present serious threats on the inflation front, on the value of the dollar, and therefore, in terms of the prices small businesses and consumers pay at the gas pump.”
“Over 40 percent of small business owners say their companies won’t survive if energy prices remain high or increase further,” added SBE Council President and CEO Karen Kerrigan added, “With National Small Business Week just days away, there’s no better time to explore what our leaders can do bring fuel costs down and help American business thrive. That starts with a genuine ‘all of the above’ energy strategy.“
SBE Council is a nonprofit, nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For more information, please visit: www.sbecouncil.org.
SOURCE Small Business & Entrepreneurship Council