On September 16 the Federal Reserve raised its benchmark rate a quarter point to a 3.75-4% target range, its first hike since July 2023, in a unanimous decision. Diesel hit a record $6.31 a gallon the same day. The Fed then held rates at its October meeting. Core PCE inflation has run at 2% for three months, though headline inflation came in at 3.4% and the budget deficit sits at 6% of GDP. Trump told Time rates should be 1 percent, and Goolsbee says AI data center investment is pushing up prices for components, electricians and land. Investors expect a possible December hike.