The Fed did exactly what an independent central bank is supposed to do: fight inflation instead of flattering the White House. A unanimous 12-0 vote and a quarter-point hike, the first since 2023, show the committee reads the data rather than the political mood. Holding steady after markets priced a hike at 92% would have pushed yields higher and torched credibility.
An oil supply shock cannot be fixed with interest rates, and this hike to 3.75%-4.00% proves the point. Higher rates produce zero extra barrels, zero refining capacity and zero repaired supply chains, while squeezing credit card borrowers, builders, manufacturers and a government refinancing trillions in debt. Punishing American enterprise for an energy crisis invites a recession.
© 2026 Improve the News Foundation.
All rights reserved.
Version 7.4.1