Federal Reserve Vice Chairman Donald Kohn hinted that the central bank is inclined to leave rates steady despite rising inflation worries among US consumers.
In prepared remarks to the Boston Fed's inflation conference on Cape Cod, Kohn said that when the economy is hit with an oil price shock as it has been this year, the "appropriate" Fed policy will permit -- temporarily -- both higher inflation and higher unemployment.
On Main Street some had hoped higher interest rates might strengthen the dollar and pull down the price of oil... as well as gasoline. But without rate increases that seems less likely.
Fast Money fan Bill J. from Florida writes, "I believe the largest negative for high crude is the possibility of a gulf coast hurricane....we would immediately be thrust to the $8-10/gallon range. I pray we don't have that experience."
And that leads to our Fast Money Reader Poll. Do you think the Fed should raise interest rates in an attempt to bring down the price of crude?
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