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Gas Prices Jump 21% as Fed Holds Rates

5/1/2026

35 6 Full Breakdown

Summary

Story summary

Gasoline prices jumped 21% in March, raising the average to $4.30 per gallon.
The Federal Reserve's inflation gauge rose 0.7% in March, setting the annual rate at 3.5%.
Jerome Powell said the Fed will keep rates unchanged as it assesses the price shock.
Analysts expect the European Central Bank to hold its rate at 2% as inflation hit 3% in April, driven by a 10.9% surge in energy prices.

History

Historical Context

In October 1973 OAPEC imposed an oil embargo that pushed world crude prices up nearly 300 percent, spurring U.S. inflation and prompting Nixon’s administration to tighten policy. The shock showed how abrupt energy spikes can embed inflation, a lesson Fed Chair Jerome Powell cites as he raises rates while gasoline climbs 21 percent and the ECB holds rates near 2 percent.

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Story summary

Gasoline prices jumped 21% in March, raising the average to $4.30 per gallon.
The Federal Reserve's inflation gauge rose 0.7% in March, setting the annual rate at 3.5%.
Jerome Powell said the Fed will keep rates unchanged as it assesses the price shock.
Analysts expect the European Central Bank to hold its rate at 2% as inflation hit 3% in April, driven by a 10.9% surge in energy prices.

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