text: Ranking Member of the Joint Economic Committee senator Mike Lee (R-UT) released a statement commenting on the fourth-quarter GDP report issued by the U.S. Department of Commerce, stating that “2021 was poised to be a year of recovery, but the economy failed to meet its potential. Rising prices, cratering optimism, and missing workers leave no question that big government solutions are not what our country needs.” Lee went on to say that the current administration and congress are an ample reason that the economy did not reach its potential, saying that they’ve been “promoting policies that discourage Americans from returning to work and enacting an unsustainable government spending agenda that stoked the highest inflation rate this country has seen in four decades. Americans are hurting as a result. Families paid $3,500 more last year to buy the same household goods they did the year before. Real wages have decreased, and 3.6 million workers are still missing from the recovery.” Lee concluded his statement by calling for an end to excessive taxing and government spending, saying, “We cannot tax and spend our way to shared prosperity. We must put trust back in the families, workers, and businesses who will lead our economy into the future.” (AC: Senator Lee believes that the sustained economic stimulus from the Federal Reserve did more harm than good, causing massive inflation in an economy that could have recovered without it. Looking ahead this year, growth forecasts continue to be revised down. The latest from the International Monetary Fund puts 2022 GDP growth at 4%, down from estimates of 5.2% last month. – T.W.)Biden delivers remarks on economic repercussions after Russian invasionIn an address given on Tuesday, President Joe Biden said that “to be clear, if Russia decides to invade, that will also have consequences here at home, but the American people understand that defending democracy and liberty is never without cost.” Biden stated that the U.S. is prepared to heavily sanction Russia if it invades Ukraine, which could put a strain on the global oil supply. Russia is the third-largest producer of crude oil in the world, supplying around 12% of the global crude oil supply, according to Statista. If the U.S. sanctions Russia such that this supply is locked in Russia, Biden said, “I will not pretend this will be painless. There could be impact on our energy prices. So we are taking active steps to alleviate the pressure on our own energy markets and offset rising prices.” Biden did not specify what actual steps the administration is taking to alleviate the potential for gasoline prices in the U.S. to spike significantly as a result of economic sanctions on Russia. (AC: The U.S. finds itself in a vulnerable position as Russia accounts for about 8% of American crude oil imports. This reliance on Russian crude oil could prove to be costly if the U.S. does sanction Russia, especially after Biden canceled the construction of the Keystone XL pipeline in June of 2021. -T.W.)The information provided by Forward Observer in this report is for informational purposes only. It should not be considered financial advice. You should consult with a financial advisor to determine what may be best for your financial needs.— END REPORT