HomeIndustriesHigher Oil Prices are "Manageable" Economic Concern, Goldman Sachs

Higher Oil Prices are “Manageable” Economic Concern, Goldman Sachs

Goldman Sachs analysts have claimed that rising oil prices should not have too much of an impact on U.S. consumers or gross domestic product, adding that they are a manageable challenge for the U.S. economy. On Monday, the national average for gasoline was $3.85; just three pennies lower than its peak for 2023.

“While we forecast consumption growth to slow during the fall and winter, we think higher oil prices are unlikely to cause consumer spending and GDP to decline,” Goldman’s chief economist Jan Hatzius wrote in a note to consumers, explaining that the level of change in prices is small compared to 2008 and the first half of 2022.

According to the Goldman Sachs team, the Federal Reserve is unlikely to adjust its fiscal policy in response to changes in oil prices, particularly since core inflation and inflation expectations are on the decline.

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