The job-approval ratings of Obama have dropped thanks to increase in price of gas
. It has made him vulnerable to political stone-throwing despite the fact that the chairperson of the Federal Reserve, Ben Bernanke has assured that prices would soon peak.
Republican John Boehner (Ohio) speaker of the House stressed the increasing political pressure being placed on Obama recently. He commented that in the next re-election he "certainly isn't gonna win" if gas prices reach $5 or go up to $6. At present the national average is $4 per gallon.
Tom Kloza of Oil Price Information Service (chief analyst) wrote in e-mail, "I believe prices will stabilize and that $4 a gallon will be an outlier rather than an average during driving season".
"Demand destruction" will keep the prices at bay as consumers are avoiding driving unless necessary. Many refineries in USA had shut down because of maintenance but are now beginning to start up.
The present national average per gallon of gas at $3.97 went up by 48% on Labour Day as per AAA the country"s biggest motoring organization. In California as well as New York the prices have already touched $4.
Talking to reporters recently Bernanke said that prices will not probably continue to spike and that the present rate will either "stabilize or even comb down" if the turmoil in the Arab world abates. According to U.S. Energy Department"s Energy Information Administration the prices will go down to an average of $3.85 during the third quarter and drop further to $3.74 during the last quarter. Experts with Goldman Sachs opined that the oil prices would go down.
Despite arguments the present spurt in price rise has shaken the confidence of consumers and thereby the economic recovery. Bernanke admitted that it has generated "a great deal of financial hardship". A few notches up or down are drawing attention of consumers and plenty of political movements.
Ed Goeas, a Republican pollster said that the gas prices have caused widespread discontent among the voters as they worry about its impact on jobs and the economy. The increased prices are already telling on the economy by cutting away 2/3% point from the annual growth. Professor James Hamilton of University of California in San Diego said, "It is weighing on consumers. You can see it in consumer sentiment. You see it in consumer spending. The economy won"t be as strong".