NANCY CORDES:
00:00:58
It was an Oval Office event meant to celebrate Artemis II's successful mission around the moon, but the conversation quickly veered to pressing issues back here on Earth, including the impasse in Iran. They have to cry uncle. That's all they have to do. Just say, we give up. We give up. But their economy is really in trouble.
NANCY CORDES:
00:01:20
The US economy is suffering, too, with gas prices jumping $0.07 in just one day to an average of $4.30 a gallon. Global oil prices climbed above $120 per barrel Wednesday, the highest since 2022, as investors came to terms with the possibility of a months-long disruption to supply. It hasn't even peaked yet.
NANCY CORDES:
00:01:43
The Federal Reserve declined to lower interest rates Wednesday, with Chairman Jerome Powell citing the rising cost of gas. Remember, when gas prices go up, that's disposable income coming out of people's pockets, So they're going to spend less on other things.
NANCY CORDES:
00:01:59
With the US and Iran both claiming to control the Strait of Hormuz, shipping traffic has fallen to 5% of its normal levels. In a social media post, Trump warned Iran no more Mr. Nice Guy, brandishing a weapon in this AI image. There are no talks currently scheduled, though Trump insisted he can get a deal done by phone. The blockade has been 100% foolproof. It shows how good our navy is. I can tell you that. Nobody's going to play games. Germany's chancellor has a very different view. He said a few days ago that the Americans obviously have no strategy for exiting this nine-week war. Well, on Wednesday, in what appeared to be a tit for tat, Trump announced he's now considering pulling some US troops out of Germany. Nate. Nancy, thank you. Now let's talk about more on those rising gas prices. CBS News Business Analyst Jill Schlesinger is here. Jill, good morning. So the gas prices, they were down after that ceasefire was announced. What happened? Well, you heard Nancy say just 5% of shipping traffic is going through that strait. And that means that all the countries that were saying, oh, we can get through this, we've got stockpiles, they're going through the stockpiles they had. Now they're coming to the market, pushing up the price of oil. Oil rises. About 2/3 of a gallon of gas is based on the price of oil. And boom, now we are $1.32 higher than we were before the war. This is going to put pressure. You heard Chairman Powell say, hey, Americans are absorbing another $80, $100 a month because of these higher prices. Speaking of Chairman Powell, he made an important announcement yesterday about his future. And what did the Fed do, and what does it forecast for the near term? Well, let's start with the Fed. They kept rates steady. That was expected. There was no way they were going to lower rates. They are looking to see if these high prices at the pumps are spreading to the rest of the economy. So far, not yet. Then Chair Powell said, hey, my term ends on May 15. Kevin Warsh, President Trump's nominee, will take over. However, I also have a second term, which is as a voting member of the Federal Reserve Board. That term is up January of 2028. Usually, when a Fed chair is replaced, they say, I'm out of here. I'm going to retire. Powell says, I'm staying on for as long as I think is necessary, because he believes the Fed independence is under attack by the Trump administration. So until the Department of Justice, Jeanine Pirro drops all investigations of Fed officials, he's hanging around. This is a thorn in the side of the president, and it was a real sticking it to you in that press conference. What the kids would call a flex.
JILL SCHLESINGER:
00:04:36
Oh, yes, a flex, Major, exactly. A subtle one. Jill, thank you. Sure.
