Schaftlein Report | Inflation and Gas Prices Dominate Powell testimony before Senate

Topics: 1) Crude Oil prices fall to $103 per barrel as recession fears hit market - But for how long? 2) Fed chairman Powell: "higher rates will moderate asset prices" *"Price stability is the bedrock for the economy" - We do not have that right now **Inflation is a supply demand imbalance and a policy error of the Biden administration and the Federal Reserve 3) The current Fed funds rate is 1.6% - Powell says it will be 3-3.5% by year end 4) Biden and some Democratic Senators blame oil companies - Chevron fires back at the criticism 5) Biden to support a 3-month Federal gas tax holiday (18 CENTS ON GAS AND 24 CENTS ON DIESEL) Pelosi once called it "showbiz" - Will it pass congress and to what effect? We say minimal to no effect 6) Russian Ruble is the strongest performing currency this year up 40% versus the dollar a. Strong commodity prices and $20B per month in export revenue of oil and gas are contributing factors b. Paying for oil in Rubles pushes demand in addition to capital controls 7) Russia is rerouting trade through Brazil, India, China and South Africa 8) Demand for mortgages is plunging and house price gains stall as this part of the market desperately needs a cool down 9) Press secretary says Biden will "ELEVATE" pain at the pump - She meant to say alleviate