Mark Zandi: The U.S. economy has already been hit very hard by higher oil prices

• The U.S. economy is already feeling the strain from high energy prices, with the typical American household spending nearly $1,000 more on fuel.
• Consumer spending is currently being maintained by drawing down savings, as the cushioning effect of tax refunds has passed.
• Zandi expects the Federal Reserve to raise interest rates today, but he personally believes they should hold policy steady due to a soft economy, struggling job market, and inflation expectations that remain well-anchored.

Mark Zandi discusses the significant impact of high energy prices on the U.S. economy, noting that consumers are already feeling a pinch and drawing down savings. He anticipates the Federal Reserve will raise interest rates, a move he personally disagrees with given the current soft economic conditions.