Richmond Federal Reserve Bank President, Thomas Barkin, has stated that businesses continue to believe that high oil prices will only be a short-term disruption, despite little evidence that consumers have slowed down on spending or have shifted inflation expectations. Barkin believes that if businesses believe this is going to last long enough, they are more likely to see pullback. He also noted that while gas spending has increased, the rest of consumer spending appears healthy. The Federal Reserve (Fed) has kept its policy interest rate steady at 3.50% to 3.75% and is projecting a single quarter-point rate cut by the end of the year. Gas prices have risen again to a national average of $4.06, the highest since summer 2022. The Fed may be left on hold, with inflation expected to only make only halting progress towards its target of 2% this year, given recent price shocks under Trump.