Gas prices just hit $4 a gallon. The Fed isn’t moving.

Gas prices just crossed $4 a gallon for the first time in over three years, driven by a war-triggered surge in global crude oil prices that has lifted them more than 30 percent. The spike in energy costs is hitting household budgets directly, raising expenses for driving and home heating. US consumer prices rose by the most in nearly four years in March, the sharpest jump since 2020. Treasury Secretary Scott Bessent said the Federal Reserve should 'wait and see' before cutting rates, emphasizing that the central bank is 'doing the right thing by sitting and watching.' He argued that despite the inflationary shock, the US economy remained strong in January and February and that the surge in prices is unlikely to become embedded in long-term inflation expectations. Bessent also noted that unlike many European and Asian countries, the US has not subsidized demand to offset the pain. The Fed, for now, remains on hold, with no move toward rate cuts while the conflict's economic effects unfold.