Dallas Fed Director: ‘High Oil Prices Here To Stay’

Posted In: Commodities, Economy, Energy, Federal Reserve, GDP, Gasoline, Natural Resources, Oil

On Tuesday, MarketWatch’s Stacey Delo interviewed Stephen Brown from the Federal Reserve Bank of Dallas while he attended the Clean Tech Forum in San Francisco. Brown, the Dallas Fed’s Director of Energy Economics and Microeconomic Policy Analysis, told MarketWatch that high oil prices are here to stay. He predicts that the price will fluctuate in the $90 to $100 range for the next 4 to 6 months. Furthermore, Brown suspects that gasoline prices are heading toward an all-time high in the week before/week of Memorial Day.

Dr. Brown, who is also an associate editor of the academic journal Energy Economics, believes that the ongoing economic slowdown in the United States has been driven by factors other than oil prices. During the interview, Brown claimed that energy prices are responsible for only 1/10 of a percentage point slowdown in GDP growth on any given quarter.

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