Investors increase bets on Federal Reserve rate rise after oil price surge
Sharp increase in energy prices means next week’s US central bank meeting is ‘live’, investors say
Source: Financial Times
―
DW NOTE
The Fed spent eighteen months pretending energy prices were "transitory" in 2021. Now investors think a Strait of Hormuz crisis — 102 days in, with shipping still recovering from total disruption — makes next week's meeting "live". Oil is up 8% in a week because 20 million barrels a day went missing, not because the economy is overheating. Raising rates into a supply shock is how you turn inflation into stagflation.