Higher oil prices not the only problem for the Fed
The jump in oil prices comes at a time when other indicators of near-term inflationary pressures are also beginning to look a bit more concerning. Accordingly, even if oil prices fall back sooner rather than later, it is getting harder to envisage Fed Chair nominee Kevin Warsh persuading the rest of the FOMC to support further interest rate cuts until there is firmer evidence that inflation is on a path back to 2%.
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