Rising Gas Prices = Economic Freeze

Gas prices were down six cents since the last time I filled up my car, which hopefully means the negative impacts of energy prices on the economy will begin to abate. Nonetheless, having sufficient supplies to meet demand is critical to a thriving economy:

Rising gas prices. Rising inflation. Rising interest rates. Slowing economy. It's a combination not seen since the late 1970s, when Americans endured an era of ``stagflation.'' And it represents a tricky balancing act for Fed Chairman Alan Greenspan.

Greenspan appears most worried about tamping down modestly increasing inflation, even if the rate boost will also trim economic growth. But many experts say the additional drag created by higher gas prices has made it difficult to know best how to steer the economy while avoiding a crash landing.

``It really is a puzzling problem for policy-makers,'' said Scott Anderson, senior economist at Wells Fargo. ``It's the worst of both worlds. And policy-makers will have to choose which evil they want to fight.''