NEW YORK (Reuters) - The rise in oil prices has a balanced effect on the U.S. economy, pinching consumers but boosting the energy sector, Federal Reserve Governor Lael Brainard said on Thursday.
“As oil prices have gone up ... it is seen as taking some disposable income out of the pocket of consumers. But at the same time they are starting to see higher returns because of the changes in the tax” cut legislation, she told economists in New York.
“The effect on the overall economy though ... importantly is not just through consumers but it’s also through the activity and business investment in the oil and gas sector (which today) is being a support to growth.”
Reporting by Jonathan Spicer; Editing by Chizu Nomiyama