Fed on Fence as US Braces for Inflation Report Amid Soaring Oil Prices
The US is bracing for a crucial inflation report on Friday, which will come as oil prices continue to soar and interest rates are on the rise. The Federal Reserve is set to make a decision on whether to increase its benchmark interest rate next week, with some officials suggesting that the report could sway their decision.
Gas prices have jumped 7% in the past month, reaching $4.28 per gallon nationwide, and diesel fuel has reached all-time highs. The effects of tariffs are also still being felt, with the Trump administration's trade fight with Canada expected to impact a small number of imports.
Kathy Bostjancic, chief economist at Nationwide, warned that the situation in the Middle East could lead to prolonged disruption and higher costs for consumers. 'This is not one and done,' she said. 'It's unclear when tensions in the Middle East are going to settle down.'