WASHINGTON: Trump administration officials are scrambling to contain the economic and political fallout of the war with Iran, three people familiar with the White House’s discussions told Reuters, as hopes for a quick resolution fade.
US President Donald Trump this week backed suspending the federal gas tax, a step that would knock 18 cents a gallon off motor fuel prices currently averaging more than $4.50 a gallon nationwide.
Once viewed by some White House aides as unnecessary, the idea is gaining urgency as officials run low on options to show they are tackling rising costs, said the people, who spoke on the condition of anonymity to discuss sensitive internal deliberations.
Within the White House, a consensus has emerged that with prices up 50 percent since the start of the war, Trump needs “a visible consumer relief move now,” one of the people said.
Historically, $4-per-gallon gasoline has been a level that triggers public backlash and economic anxiety. That’s borne out since the war started, as consumer sentiment recently dipped to a record low, and US consumer inflation surged to 3.8 percent in April, highest in nearly three years.
