Wall Street is worried that higher energy prices are adding to already stubbornly high inflation. Rising fuel prices take a bigger chunk out of consumers' wallets in several ways. Directly, gasoline prices in the U.S. have surged 36 percent from a month ago to average $4.08 per gallon, according to the auto club AAA.
Indirectly, rising fuel prices tend to make a wide range of services and goods more expensive. Flights become more expensive as airlines raise ticket prices to offset rising fuel costs. Consumer goods become more expensive as shipping and transportation costs rise.
Inflation has been stubbornly above the Federal Reserve's 2% target. The war and its corresponding surge in energy prices effectively pushes inflation higher and that has dashed hopes for the Fed to cut interest rates. Wall Street had hoped for the central bank to cut rates in order to help offset a weakening job market. Lower interest rates could help stimulate the economy by lowering borrowing costs, but they also risk worsening inflation...
https://www.pbs.org/newshour/economy/volatility-hits-wall-street-and-u-s-oil-tops-110-a-barrel
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