The Fed’s choice should keep oil prices moving downward, as well, which can only be good for the economy and the mood of consumers. Oil tumbled below $92 a barrel, sending crude back to its year-ago levels, reports Stevenson Jacobs for the Associated Press. As Wall Street deteriorates, there’s growing evidence that consumers and businesses will continue to cut back, despite falling prices.
On CNBC this morning, it was said that for every dollar that oil drops, it’s $1 billion that’s going back into the economy. Oil has fallen 37% since reaching a record high above $147 on July 11.
We’re now back to where we were last year. If we can sustain this into the winter months, there’s a big advantage for the economy in there.
For full disclosure, some of Tom Lydon’s clients own shares of UUP.