One month ago, when looking at the sharp spike in oil and gasoline prices (which at the time averaged $2.73), we said that the surge in energy costs – largely the result of geopolitical risk emanating from Iran for which Trump was been responsible – will wipe out any remaining benefits for the middle class from Trump tax reform. Fast forward to today, when gas is nearly 20c higher than it was a month ago, and fast approaching the critical for middle-class consumption level of $3.00. (Click to enlarge) Since then the topic of how much of an adverse impact rising oil prices will have on the economy has emerged front and center, with pundits and economists debating at what price the negative consequences from reduced consumer spending will offset the favorable benefits from increased CapEx spending by US shale and energy companies. Picking up on this topic overnight, […]