Oil prices of $100/barrel may prompt the Fed to ra

Aihucha reported on September 20: A Wall Street Journal article stated that the almost non-stop rise in oil prices has pushed Brent crude oil to nearly US$100 per barrel, posing new challenges to central banks in various countries to combat inflation. Many analysts expect crude oil prices to continue rising, which will lead to higher fuel prices, higher inflation and possibly higher interest rates. The Fed is expected to keep interest rates unchanged tomorrow while leaving the door open for further rate hikes. The central bank excludes volatile energy markets when setting borrowing costs. However, soaring oil prices gradually affected inflation for other goods and services. That could push up price pressures while slowing economic growth, a scenario the Fed and investors want to avoid. "There's obviously a risk of this pushing up inflation," said David Fyfe, chief economist at commodities data firm Argus Media. "This could encourage the Fed to raise rates further before the end of the year."