Federal Reserve can’t pump oil
I think the Fed should hold. Inflation is still too high. But the most important question is not whether inflation went up. It is why. Consumer prices rose 0.4% in August and 3.4% from a year ago. Much of that acceleration came from energy. Gasoline prices jumped 3.9% in one month. Wholesale diesel prices surged 24.1%. Oil prices have climbed above $100 a barrel as conflict in the Middle East disrupted supply. That is a very different problem from an economy where consumers are spending too much and businesses cannot keep up. The Fed can make borrowing more expensive. It can slow ...