The Federal Reserve is stepping up its war on inflation. That means borrowing costs are going sharply higher for families and businesses.
More than a year later, price increases at 40-year peaks have come to be anything but, so much so that the Fed this week appears ready to hike interest rates by the most since 1994 to quell them. Biden, meanwhile, is paying the political price for being the face Americans blame for $5 a gallon gas and 10% price increases for eggs.
World shares inched higher and Wall Street was tipped for a stronger open on Tuesday, as U.S. Treasury yields steadied at multi-year highs following the worst selloff in years.
According to data by the Energy Information Administration compiled by Bloomberg, demand for gas has hit its lowest level during this time since 2013, excluding the impacts of the ongoing COVID-19 pandemic.
Tuesday, the average price of a gallon of regular unleaded gas has now risen above $4 a gallon in all 50 states. That's the first time every single state has passed the $4 mark at once.
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U.S. consumer price growth slowed sharply in April as gasoline eased off record highs, suggesting inflation has probably peaked, though it is likely to stay hot for a while and keep the Federal Reserve's foot on the brakes to cool demand.
US makes biggest interest rate rise in 22 years