{"id":72447,"date":"2026-09-30T19:38:14","date_gmt":"2026-09-30T23:38:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-kashkari-warns-of-persistent-inflation-as-trump-weighs-diesel-export-ban\/72447\/"},"modified":"2026-09-30T19:38:14","modified_gmt":"2026-09-30T23:38:14","slug":"feds-kashkari-warns-of-persistent-inflation-as-trump-weighs-diesel-export-ban","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-kashkari-warns-of-persistent-inflation-as-trump-weighs-diesel-export-ban\/72447\/","title":{"rendered":"Fed\u2019s Kashkari Warns of Persistent Inflation as Trump Weighs Diesel Export Ban"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Minneapolis Fed President Neel Kashkari<\/strong> warns that inflation remains too high at approximately <strong>3%<\/strong>, suggesting at least <strong>one more rate hike in 2026<\/strong> and another in <strong>2027<\/strong>.<\/li>\n<li><strong>President Donald Trump<\/strong> is &quot;thinking about&quot; a <strong>90-day diesel export ban<\/strong> to combat record fuel prices, though he acknowledged a potential &quot;negative impact&quot; on gasoline production.<\/li>\n<li><strong>Middle East crude flows<\/strong> have recovered to <strong>98% of pre-war levels<\/strong> (17.5 million barrels per day), helping to stabilize <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> despite ongoing regional tensions.<\/li>\n<li><strong>Australia&#39;s manufacturing sector<\/strong> remains in contraction with a final September PMI of <strong>49.6<\/strong>, reflecting persistent pressure from high energy costs and softening demand.<\/li>\n<li><strong>CPP Investments<\/strong> agreed to sell its stakes in Australian toll roads to <strong>Transurban (<a href=\"\/stock\/TCL\">TCL<\/a>)<\/strong> for <strong>A$4.5 billion<\/strong>, covering interests in WestConnex and Northwestern Roads Group.<\/li>\n<\/ul>\n<h2>Fed Outlook: Kashkari Signals Higher-for-Longer Stance<\/h2>\n<p>Minneapolis Fed President <strong>Neel Kashkari<\/strong> emphasized on Wednesday that the central bank must remain committed to its <strong>2% inflation target<\/strong> despite recent &quot;cooler&quot; data. Speaking at the Council on Foreign Relations, Kashkari noted that while the economy remains robust, inflation has stayed above target for an extended period, potentially requiring the benchmark rate to reach the <strong>4.00% to 4.25% range<\/strong> by year-end. He expressed concern that rolling supply shocks could de-anchor inflation expectations and suggested the <strong>neutral rate<\/strong> may be higher than previously estimated.<\/p>\n<h2>Energy Markets: Trump Weighs Export Restrictions Amid Supply Recovery<\/h2>\n<p><strong>President Donald Trump<\/strong> confirmed he is seriously evaluating a temporary ban on <strong>U.S. diesel exports<\/strong> as domestic prices hit a record <strong>$6.53 per gallon<\/strong>. While the move aims to increase domestic supply, industry groups and analysts from <strong>Goldman Sachs<\/strong> warn that reducing diesel output could inadvertently tighten gasoline supplies, potentially raising gas prices by <strong>30 cents per gallon<\/strong>. Simultaneously, global markets are finding relief as <strong>Middle East crude exports<\/strong> rebound to nearly <strong>17.5 million barrels per day<\/strong>, easing immediate supply concerns even as refined product markets remain tight.<\/p>\n<h2>Global Industrial &amp; Corporate Developments<\/h2>\n<p><strong>Australia&#39;s S&amp;P Global Manufacturing PMI<\/strong> for September was finalized at <strong>49.6<\/strong>, a slight improvement from the flash reading of <strong>49.3<\/strong> but still indicating a contraction in the sector. Manufacturers cited high energy costs and a drop in new orders as primary headwinds. In the aviation sector, <strong>Boeing (<a href=\"\/stock\/BA\">BA<\/a>)<\/strong> announced that <strong>Japan Airlines<\/strong> has renewed its <strong>Integrated Materials Management (IMM)<\/strong> services agreement, a move designed to streamline the carrier&#39;s parts procurement and inventory planning for its <strong>787 Dreamliner<\/strong> fleet.<\/p>\n<h2>Infrastructure: Transurban Secures A$4.5B Toll Road Deal<\/h2>\n<p>In a major infrastructure shift, <strong>CPP Investments<\/strong> has reached an agreement to sell its Australian toll road interests to <strong>Transurban (<a href=\"\/stock\/TCL\">TCL<\/a>)<\/strong> for <strong>A$4.5 billion<\/strong>. The deal includes significant stakes in the <strong>WestConnex<\/strong> project and the <strong>Northwestern Roads Group<\/strong>. This acquisition further solidifies Transurban&#39;s dominance in the Australian transport sector, providing the company with long-term, inflation-linked revenue streams from critical urban arteries.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Minneapolis Fed President Neel Kashkari warns that inflation remains too high at approximately 3%, suggesting at least one 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