This seems like an obvious point, but I haven’t seen anyone else make this connection? Anyway at IER I talk about falling oil prices.
An excerpt (not having to do with the Fed angle):
Whenever oil prices shoot up sharply, causing gas prices at the pump to rise as well, people “in the know” talk matter-of-factly about the greedy speculators and Big Oil ripping motorists off. When the price rise is particularly steep and sustained, even Congress and regulators get involved, since nothing ensures efficiency and the consumer protection like a federal investigation.
So let’s all burn the present episode into our minds, to serve as a counterweight the next time global forces of supply and demand push up crude oil prices. In particular, U.S. gasoline prices have fallen along with crude…