"The energy shock is to going to hit those who have the least cushion. And it doesn't look like those tax refunds are going to be here to save them."
"Gas prices could peak in May at $4.36 a gallon, based on oil price forecasts by Goldman Sachs, followed by slow declines for the rest of the year."
"The notion that gas prices decline much more slowly than they rise is so ingrained among economists that they refer to it as the 'rocket and feathers' phenomenon."
The U.S. economy was anticipated to benefit from significant tax refunds due to Trump's tax cuts. However, rising gas prices, exacerbated by the Iran war, are diminishing these benefits. Gas prices have surged to an average of $3.94, impacting consumer spending. Economists predict slower growth as households allocate more funds to gas, particularly affecting lower and middle-income families. Experts suggest gas prices may peak at $4.36, with a slow decline thereafter, reinforcing the economic strain on those with limited financial flexibility.
Read at Fortune
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