White House Studies $4 Gallon ‘Nightmare’ Scenario

President Bush’s inner circle has become preoccupied with soaring gas prices and its toll on the economy, a well-placed White House source said over the weekend.
Bush has quietly asked for a review of any and all economic fallout on the nation if gas prices continuing racing up and over the psychological line of $3 a gallon, as they have in recent weeks in some locations, the source explains.
Bush’s top economic advisers have conveyed to the president that a “nightmare” scenario of $4 a gallon is extremely unlikely in the short term.
“The seasonal run-up of gas prices has been tough this year, but like every year in the past two decades, we expect we will will see some easing,” the source claims from Washington.

Drudge Report