Don't expect oil shocks to move the Fed - Reuters:
The weekend bombings of Saudi Arabia’s main oil refinery have already sparked U.S. President Donald Trump to pressure the Federal Reserve anew to lower rates.
The Fed should enact a “big interest rate drop, stimulus,” at its meeting this week, which ends Wednesday, Trump said on Twitter on Monday.
However historical precedent and the United States’ changing energy diet suggest the Fed is likely to stick with an expected quarter of a point interest rate cut and go no further.
The Fed has responded to past crisis events including the September 2001 terrorist attacks and the Black Friday market collapse in the 1980s. But it acted then to address trouble in financial markets that risked creating broader problems.
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