The US economy may have avoided a major decline, US Federal Reserve Chairman Ben Bernanke has said.

Mr Bernanke said the risk of a substantial downturn had “diminished over the past month or so”.

Playing down recent unemployment rises, he said a series of interest rate reductions combined with tax cuts was helping the US offset its difficulties.

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As gas prices climb ever higher, Americans are modifying their habits by driving less, combining trips, and telecommuting. One big reason for the high gas prices is the speculation going on in the markets. Let’s hope that Wall Street can calm down and realize that by pushing oil ever higher, they are hurting the economy and their own pocketbooks.