Author: Paul Davidson, USA TODAY

As gas prices skyrocket, Americans are cutting back and economic growth will slow. Lower-income households are especially hard hit.

The consumer price index rose 7.9% annually in February, a 40-year high, as soaring gasoline prices stoked an already sharp run-up in prices.

Analysts say oil and gas companies generally aren’t price-gouging consumers at the pump but sometimes their comments raise concerns

The chances of a recession in 2022 are rising amid high energy prices, soaring inflation, Russia-Ukraine war and looming Fed rate hikes.

Employers added 678,000 jobs in February as omicron faded and dining and travel picked up. Unemployment fell to 3.8%.

Fed Chair Powell will testify Wednesday and may offer views on how much the central bank will raise rates this month and the impact of Russia’s war.

Beyond gasoline prices – which mostly have been stoked by fear – the impact of sanctions in the U.S. is expected to be limited.

Russia’s full-scale invasion of Ukraine will mean a more severe impact than believed on the U.S. economy.