Federal Reserve

The Federal Reserve met today and if you get past the Fed speak and read between the lines Chairman Bernanke said we need more expansion in the economy to create more jobs and then he hinted at more stimulus. More money into the economy will spur job growth, but it will also put money into the market and weaken the dollar. Since oil is sold on the international market in dollars, a weak dollar means higher oil cost which means higher gas prices. The President is still assuming that unemployment is more important to voters than the price of gasoline and I believe this is a fatal mistake and could cost him the election. We shall see.