Live Updates > Live Update Details
2026-09-16 23:12:08
Iranian Parliament Speaker Ghalibaf: The Strait of Hormuz version of the Taylor rule is—i = r* + π* + 1.5(π?π*) + 0.5(y?y*) + α(Strait of Hormuz?Strait of Hormuz equilibrium value) + β(Strait of Bab el-Mandeb?Strait of Bab el-Mandeb equilibrium value), where α and β are both greater than 0. Let's see if raising interest rates can open up the Strait of Hormuz or produce a barrel of oil. A mere 25 basis point rate hike cannot solve the problem of this vital energy choke point; r* is not a neutral interest rate. This is the Strait of Hormuz risk premium, which we decide. Expectations are no longer anchored.
