WASHINGTON (AP) — The largest monthly jump in gas prices in six decades caused a sharp spike in inflation in March, creating major challenges for the inflation-fighters at the Federal Reserve and heightening the political challenges of rising costs for the White House. The gas price shock stemming from the Iran war has shifted inflation’s trajectory, from a slow, gradual decline to a sharp increase further away from the Fed’s 2% target. As a result, the central bank will almost certainly postpone any cut in interest rates for months. Gas prices are also a highly visible cost that has outsize impacts on consumer confidence and political sentiment.
Wall Street mixed and oil prices steady ahead of planned US-Iran ceasefire talks
Wall Street quietly hovered around yesterday’s levels and oil prices barely budged amid a shaky ceasefire agreement between the U.S. and Iran, which maintained its stranglehold on the Strait of Hormuz. Futures for the S&P 500 were flat before the opening bell Friday, while futures for the Dow Jones Industrial Average inched down less than 0.1%. Nasdaq futures gained less than 0.1%. Iran’s semiofficial Tasnim news agency claimed that talks set for Saturday wouldn’t happen unless Israel stopped its attacks in Lebanon. Brent crude, the international standard, was up 12 cents at $96.04 per barrel. Benchmark U.S. crude ticked up 33 cents to $98.20 a barrel.
