Diesel prices in the U.S. hit a record high, inflation pressure might push the Fed to hike rates again For the first time ever, U.S. diesel prices have surpassed $5.90 per gallon, setting a new record. In California, the statewide average diesel price is nearing $7.83 per gallon, with some areas like San Francisco exceeding $8 per gallon. Rising fuel prices first drive up overall inflation through gasoline and diesel, and later impact transportation and production costs. Diesel is essential for U.S. trucking, agricultural machinery, and construction equipment. When businesses pass on these increased costs, food, daily necessities, and other goods will also face price hikes. Even though the Fed’s primary focus is on core PCE, which excludes food and energy, rising oil prices still affect overall inflation. For example, higher transportation and production costs lead to increased goods prices, which in turn push up core inflation. And most of these increases are ultimately passed on to consumers. This is why I’m a bit concerned about Bitcoin’s price trend moving forward. While I don’t think there will be a rate hike in September, the September dot plot will likely be influenced by August’s CPI data. If inflation continues to rise, the Fed might use the dot plot to scare the market. And if the Hormuz issue isn’t resolved, September’s inflation will definitely be higher. Who knows, the Fed’s "gift" for the midterm elections might just be another rate hike. @Gate Crypto, U.S. stocks, Hong Kong stocks, Korean stocks, gold, CFD, prediction markets all in one place.