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Oil and its effect on the economy/monetary policy and the federal reserve

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Please help answer the following problems.

1) Oil and its effect on the economy
- With rising oil/energy prices today, how is it affecting the economy?

2) Monetary Policy and the Federal Reserve
- What is the stance of the federal reserves monetary policy in today's climate?

3) Yield Curve/Inversion
- What in today's market would cause an inverted yield curve and are we heading in that direction?

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1. Rising oil prices will have a negative effect on the economy because people will be spending more of their income on heating oil and gasoline--this means that they will spend less on other items. This will lead to a slowdown in economic activity and an increase in inflation. This is because the impact of the higher oil prices on production costs. These higher production costs are reflected in the higher prices consumers will have to pay for goods. In addition, because of high crude oil prices individuals will be less likely to purchase SUVs and cars that consume a lot ...

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