Obama: Attorney Gen. to probe gas prices

RENO, Nev., April 21 (UPI) -- President Barack Obama told a town hall meeting in Reno, Nev., Thursday the Justice Department will investigate soaring U.S. fuel prices.

Obama said the department is forming a gas price task force to protect consumers from price gouging and "root out any cases of manipulation in the oil markets that might affect gas prices -- and that includes the role of traders and speculators.

"We are going to make sure that no one is taking advantage of the American people for their own short-term gain."

Obama also said America must start living within its means and defended his budget plans.

"For a long time, Washington acted like deficits didn't matter," the president said in a speech at ElectraTherm Inc., a Nevada renewable energy company, before fielding questions. "A lot of folks promised us a free lunch. We had a surplus a decade ago, but we cut taxes and fought two wars and created a new prescription drug program, all without paying for it.

"Well, as the saying goes, there's no such thing as a free lunch," he said.

Obama, who faces a tough fight with Republicans over budget cuts, said curtailing government spending has to do more than slashing domestic programs.

"It begins by combing the budget for savings wherever we can find it. We had a good start a few weeks ago, when both parties came together around a compromise that cut spending and kept government open. We need to build on those savings, and I'm not going to quit until we've found every dime of waste and misspent money."

Obama said he would be looking at savings in defense, healthcare, reforming Medicare and Medicaid and changing the tax code "so that it's fair and simple -- so that the amount of taxes you pay doesn't depend on the kind of accountant you can afford."

Before leaving for Reno, the president spoke to a Democratic National Committee event at the St. Regis Hotel in San Francisco. He plans to spend the night in Los Angeles after attending three DNC events.