Inflation

The big unknown for the coming election is what will happen to inflation this coming summer. The US has met the challenge by increasing fossil fuel production. Offsetting this is the oil exports to Europe and the price of oil is based on the world market. The same goes for the cost of natural gas. The US had record exports of natural gas which helped Europe which had lost gas from Russia. So far US oil exports are keeping the price of oil down. The increase in energy production will keep fuel cost down but the cost of shipping has increased 173% from China to Europe because of the blocking of the Suez Canal. So far the US has escaped this since imports from China come by way of the Pacific. If inflation returns the Fed will want to raise interest rates but Biden will oppose that since this is an election year.