Soaring Gas Prices Threaten US Economy

0:00It's March 22nd. I'm Cory with the story, and this is Canada News today, your AI-powered local news. The U.S. economy kicked off the year with hopes of a boost from bigger tax refunds, thanks to changes from the Trump tax cuts. But soaring gas prices, triggered by the Iran War that started on February 28th, are wiping out most of that game. Nationwide, gas now averages $3.94 a gallon, up over $1.00 from just a month ago. Gas prices should stay high for a while, even if the war wraps up soon, due to shipping delays and production issues. Economists predict a peak around $4.36 in May, with a slow drop after that. This means the average household could shell out $740 more on gas this year, almost matching the $748. Dollar bump in refunds. Lower and middle income families feel the pinch hardest, since they spend a bigger share of their earnings on fuel, and get smaller refunds. Money are already stretched thin, with credit cards maxed out and savings low, unlike during

1:04the 2022 price spike when stimulus cash. Provided a buffer. Recent data shows gas spending jump 14.4% in mid-March, while discretionary buys like dining out and travel hold steady but. Art picking up speed, hiring has slowed, and borrowing is up as people keep spending. Still, analysts see the economy growing this year, just at a slower 1.9% pace instead of 2.5%. Higher gas costs may fuel short-term inflation, but weaker spending could ease it later. Testing consumer resilience once again.