War in Iran Drives Up Gas Prices, Pushing Interest Rates Higher

0:00It's March 24th. This is Durham News Today, powered by AI. The war in Iran that started on February 28th has driven up gas prices, and now that's pushing interest rates higher too. Longer term rates have climbed fast, making mortgages, car loans, and business borrowing more expensive for everyday Americans. Earlier this week, Wall Street shifted its outlook sharply. Investors no longer expect any Federal Reserve rate cuts this year. Instead, there's now nearly a 25 percent chance of a rate hike by October, according to market futures. Fed officials are reacting with caution. Chicago Fed President Austin Goolsbee said, rate increases could be on the table if inflation picks up without hurting jobs. San Francisco Fed President Mary Daley added that the war's uncertainty means rates could go up, down, or state put. This predict inflation will hit 3.4 percent this month, and in the year around 3 percent, well above the 2 percent target. Meanwhile, the 10-year treasure yield jumped from just under 4 percent to nearly 4.4 percent,

1:05pulling 30-year mortgage rates to 6.22 percent from below 6 percent. This leaves the Fed in a tough spot, balancing hotter inflation against any slowdown from pricey or gas that might curb spending and raise unemployment. For now, higher rates look here to stay.