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High Impact

FED CHAIR POWELL: GASOLINE PRICES WILL HINGE ON HOW LONG THE STRAIT REMAINS CLOSED, RAISING THE QUESTION OF WHETHER CONSUMER SPENDING WILL PULL BACK ENOUGH TO OFFSET THE INFLATIONARY EFFECTS — AND IT IS NOT OBVIOUS THAT…

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🏷Markets
📰via FS
✍️Edited by Luís Barata

Federal Reserve Chair Powell highlighted that gasoline prices depend on the duration of the Strait closure, underscoring uncertainty around the inflationary impact of disrupted energy supply. The key transmission channel is supply disruption affecting energy prices, which could feed through to broader inflation and weigh on real consumer spending power. Retail stocks are particularly exposed as higher fuel costs may force households to cut discretionary spending, potentially offsetting inflationary pressures with weaker demand. The market is now focused on next week’s retail sales report to assess whether consumption is moderating in response to elevated energy prices.

Source: Originally reported by FS at April 29, 2026. Summary and market context by Trading News Terminal editorial.

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