Europe and the UK are experiencing a gas shortage that threatens to undermine its goals, and wide-spread support, for a zero-emissions future. It also leaves them more dependent on Russia. Energy operates in global markets, which means gas prices in the US are also on the rise. This may prove to be a blip, but the decision to cut back on domestic production of fossil fuels suggests higher prices will be here to stay. If prices continue to rise it may further accelerate inflation, just like a spike in energy prices did in the 1970s.

Source: https://fred.stlouisfed.org

Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.