Yulia Slavina

Alan Reynolds flags Fed rate hike pattern amid oil price spikes

Alan Reynolds flags Fed rate hike pattern amid oil price spikes
Fed hikes tied to oil spikes

Alan Reynolds argues that the U.S. Federal Reserve has a consistent history of raising its fed funds rate target in response to oil price spikes, treating these increases as contributors to higher Consumer Price Index readings, even for core measures.

Reynolds points out that, contrary to the Fed’s perception, oil price spikes tend to be temporary because they impose a contractionary effect on the global economy.

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