James Thorne Warns Fed Against Rate Hikes as Brent Nears $100 in Oil Shock
Updated
Updated · Yahoo Finance · Sep 8
James Thorne Warns Fed Against Rate Hikes as Brent Nears $100 in Oil Shock
1 articles · Updated · Yahoo Finance · Sep 8
Summary
Brent crude climbed to $99.30 a barrel and WTI to $94.57 as James Thorne warned a Kevin Warsh-led Fed not to raise rates into an energy supply shock.
Thorne argued policymakers risk repeating a 2008-style mistake by treating an externally driven oil-price surge as overheated demand even as higher energy costs squeeze households and weaken growth.
The warning comes as the ECB has already tightened into the shock, lifting rates 25 basis points to 2.25% in June and facing a 99% market-implied chance of another quarter-point hike on Sept. 10.
Over the past month, WTI has surged more than 20% and Brent more than 18%, underscoring how the Iran war is feeding inflation pressure that could test central-bank responses again.