(by Dr. Goldfinger)

Federal Reserve has no intention to recess interest rate rise despite of oil prices jump, it says.

Fed Governor Mark Olson said despite gasoline prices in the U.S. have slashed from recent highs, they are not likely to fall substantially soon. Still, U.S. economy is not so much dependent on the fuel, he added. "We are less dependent on fuel as an economy than we were a couple of years ago, but that is still a significant variable," he noted.

San Francisco Fed President Janet Yellen has her opinion on the issue. Current oil prices are around half of what they were 30 years ago, and the recent increase in oil would probably shave about 0.5 percentage points off economic growth this year, she says.

Alan Greenspan, fed’s Chairman, has said that the U.S. economy would be growing at a faster clip if not for the recent climb in fuel prices.

Oil prices downed to $40 in the past week after a certain threat to reach $50 a barrel record. U.S. economy growth slowed to 2.8% in the second quarter from 4.5% in the first.