Having seen numerous fluctuations in the energy markets over the years, many analysts and policy makers have a natural tendency to “look through” the latest drop in oil prices—that is, to treat the impact as transient rather than as signaling long-term changes.
A strengthening labor market and lower gasoline prices mean Americans have extra cash for the holidays. Some economists are forecasting the money will keep flowing into, and out of, consumers’ pockets next year.
Some analysts see this as a win win because lower prices are good for consumers and the price dip may put downward pressure on inflation readings, which means the Fed can maintain stimulative low rates longer.
The Dow Jones Industrial Average capped the worst week since 2011, finishing with a 100-point lurch in the final half-hour of trading, as equities tumbled around the world after crude extended declines below $58 a barrel.