Fed: Higher Oil Prices to Slow Economy

Summary


WASHINGTON The sharp spike in energy prices that occurred after the Gulf Coast hurricanes will act as a drag on the economy although the impact on growth and inflation will not be as severe as the oil shocks of the 1970s, Federal Reserve Chairman Alan Greenspan said.

Greenspan said that with world oil markets exceptionally tight because of rising global demand, the likelihood of a sizable spike in prices due to the loss of Gulf Coast production was "an accident waiting to happen.'

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Fed: Higher Oil Prices to Slow Economy

"Although the global economic expansion appears to have been ...

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