The Federal Reserve is keeping interest rates steady, though left the door open to potential rate hikes in the future. With inflation still above the Fed's 2% target, and gas prices on the rise, consumers are feeling the brunt of inflation. Dennis Lockhart, Former Atlanta Fed President, joins Yahoo Finance to discuss the Fed's decision. Lockhart explains that "what happens at the gas pump factors through to spending on the part of households", which dampens economic activity. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
The national average price for unleaded gasoline in the United States hit a high of $3.88 per gallon on Wednesday, the highest level since October, AAA reports. Despite being significantly lower than the peak of over $5 a gallon in June 2022 following Russia's invasion of Ukraine, this price is still notably higher than historical averages. The price increase has been steady, marking an approximately 20 percent rise since the beginning of the year and over 8 percent since June 1.
U.S. crude oil stockpiles tumbled in the just-ended week, after surging the prior week, while inventories of top fuel product gasoline rose, according to a report by petroleum industry group API. The U.S. crude inventory balance possibly dipped by 5.25M barrels during the week ended Sept. 15, according to the API, or American Petroleum Institute. The petroleum industry group reported a crude build of 1.174M barrels in the prior week to Sept. 8.