Wall Street Expects Fed Pause as Diesel Prices Surge and Russian Deal Stirs Debate
OilPrice. com reported that on 14 October investors on Wall Street expected the Federal Reserve to slow its rate-hike cycle after CPI forecasts showed moderated inflation, even though oil prices stayed above $90 a barrel and the Trump administration had just announced a new diesel supply agreement with Russia. Earlier, on 7 October, NBC News noted that U. S. diesel futures jumped five percent to multi-week highs, prompting analysts to question whether the administration’s recent policy moves would curb rising fuel costs.
Fortune had reported that diesel prices remained far above last year’s levels, leading the Trump administration to defer a federal diesel tax and to strike the Russian supply deal, while Treasury yields began to track fuel prices. Fox News cited truck drivers saying diesel near $6. 30 a gallon was eroding profits, causing carriers to cut routes and raising concerns for downstream consumers. USA Today warned that the near-record diesel price surge was increasing costs for agriculture, transportation and heating, which could eventually lift prices of a broad range of consumer goods.
