Overview
- A Federal Reserve forecasting tool updated in April points to a tougher inflation path than markets expect.
- U.S. stocks had just notched fresh highs on hopes for a short Iran conflict and strong AI-fueled profits.
- Energy prices jumped after the reported closure of the Strait of Hormuz, a key route that normally carries about 20 million barrels of oil a day.
- The March inflation report showed prices up 3.3% over the past year, with energy doing most of the lifting while tariffs on goods also added pressure.
- AAA reported average U.S. gasoline at $4.11 per gallon, up from under $3 before the conflict, squeezing household budgets and raising transport and production costs for businesses.