The 1600 Crew economic policies at work. I guess that Beloved Leader's promise to "jawbone" the House of Saud into keeping oil supplies and prices in check turns out to be just another line of Texas BS from the penultimate Transplanted Texan himself.

U.S. economic growth slowed and inflation rose in the three months ending in June, the government reported today, confirming earlier signs that consumers are hunkering down in response to higher energy prices and interest rates.

Businesses also spent less on home building and on equipment and software, while federal-government spending dropped in the second quarter. All totaled, the nation's gross domestic product, which measures the value of all goods and services produced, rose at a below-average 2.5 percent annual rate in the second quarter, a sharp drop from the rapid 5.6 percent pace of the first quarter, the Commerce Department said.
...
Much of the inflation in the second quarter was due to rising energy prices, as oil shot above $70 a barrel and gasoline averaged close to $3 a gallon. And oil and gasoline prices have moved higher since June, suggesting price pressures remain strong.

More troubling to many economists were signs that more businesses are passing their energy costs on to consumers, and are finding it easier to raise prices generally. So-called "core inflation," which excludes volatile food and energy items, rose at a 2.9 percent annual rate in the second quarter, according to the Commerce Department's measure, which is favored by Fed policymakers. That was up sharply from the 2.1 percent rate of the first quarter, and well above Bernanke's preferred range of 1 to 2 percent.

It's gonna just get more interesting. Every day it's something, and not too often is it good. I think people are finally starting to figure out you get what you vote for.