In an attempt to respond to inflation and record prices at the gas pump, President Biden recently called for a 3-month suspension of the federal gas tax.
However, Hedgeye Washington policy analyst JT Taylor explains that the legislation faces pushback in Congress from Republicans – and the bill’s timing may end up backfiring on Democrats ahead of the midterm elections.
“This is all in an effort to get inflation and gas prices down. He is also going to call on the states to do the same… They figure this is going to total $0.50 per gallon,” reports Taylor.
“The pickle here is if gas prices don’t go down, and oil doesn’t go down throughout the summer, they’re going to have to reinstate this in the fall. One thing that they’re really not looking at is consumers could be faced with another massive hike come September or October.”
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