Federal Reserve issues FOMC statement

Source: Federal Reserve

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DW NOTE

The Fed just raised rates into a supply shock it cannot control. With Hormuz effectively closed since February and oil supply down 6%, this is a textbook stagflation setup — and the Committee chose to tighten anyway. The statement acknowledges "geopolitical developments" but treats them as background noise rather than the primary constraint on policy. You cannot cure a blockade with a higher fed funds rate.

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