Welcome to Investopedia’s economics live blog, where we break down daily economic news and its impact on the U.S. economy and your finances. Today, Federal Reserve Open Markets Committee officials share their perspectives on the fight against inflation.

Government Sells 42 Million Gallons of Gas Before Summer Travel

To lower gas prices ahead of the summer travel season, the Department of Energy is selling 42 million gallons of gas from the country’s reserves.

“The Biden-Harris Administration is laser-focused on lowering prices at the pump for American families, especially as drivers hit the road for summer driving season,” said U.S. Secretary of Energy Jennifer Granholm in a prepared statement.

The average gallon of gas nationwide costs $3.60, according to AAA, which is higher than a year ago but lower than in recent weeks. By increasing the gasoline supply, prices are expected to stay low as many hit the road for Memorial Day.

Banks Should Prepare for Continued High Interest Rates, Says Fed Official

With interest rates likely to remain at current levels for some time, banks must be prepared to manage associated risks, said Federal Reserve Vice Chair Michael Barr on Tuesday.

Pointing to an economy that is “quite strong” and supported by low unemployment, Barr echoed other Fed officials, stating that current interest rates are high enough to eventually reduce inflation.

“We need to see more evidence of continued progress on inflation for us to be in a position to think about adjusting policy,” Barr told a Dallas Federal Reserve conference on regional banking.

Federal Reserve Official Gives Latest Inflation Report ‘C+’ Grade.

Federal Reserve Governor Christopher Waller rated the latest inflation report a “C+” and emphasized the need for several improved inflation readings before considering a reduction in interest rates.

Speaking at the Peterson Institute for International Economics, Waller acknowledged that while progress on inflation is slow, it is still a positive development.

“It is good to see monthly inflation falling, even if it requires looking out to the second decimal point,” Waller said.

Future inflation reports must show significant improvement for Waller to support easing monetary policy. He reiterated that rates need to be held steady until price pressures ease.

“In the absence of a significant weakening in the labor market, I need to see several more months of good inflation data before I would be comfortable supporting an easing in the stance of monetary policy,” he said.

Waller noted that wage growth remains slightly too high to meet the Fed’s annual inflation target of 2%, but he believes inflation can be reduced without significantly impacting the labor market.

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