Iran's Speaker Mocks Kevin Warsh-led Fed's Rate Hike: 'You Can't 25bp a Chokepoint' — Tehran Says It Sets the Risk Premium
Iran’s Parliament Speaker Mohammad Bagher Ghalibaf mocked the Federal Reserve’s rate hike on Wednesday, posting a satirical “Straits Taylor Rule,” arguing that Iran controls the main driver of inflation. ‘You Can’t 25bp a Chokepoint’ In the post on X, he said he wrote his own version of the Taylor Rule, the standard economic formula central banks use to set interest rates, adding new terms specifically for the Strait of Hormuz and Bab el-Mandeb. “Straits Taylor Rule: i = r* + π* + 1.5(π−π*) + 0.5(y−y*) + α(SOH−SOH*) + β(BEM−BEM*), α,β > 0,” he said. He added that “you can’t 25bp a chokepoint,” arguing that the Fed’s neutral rate doesn’t account for what he says is the real driver of inflation: the risk premium tied to the two shipping corridors. “It’s SOH risk premium, and we set it,” adding “stay unanchored.” Straits Taylor Rule: i = r* + π* + 1.5(π−π*) + 0.5(y−y*) + α(SOH−SOH*) + β(BEM−BEM*), α,β > 0 Let’s see if a hike could open SOH or produce a single barrel 🙂 You can’t 25bp a chokepoint and r* isn’t neutral. It’s SOH risk premium, and We set it. Stay unanchored! — محمدباقر قالیباف | MB Ghalibaf (@mb_ghalibaf) September 16, 2026 Read Also: Nebius Group, DataMEDS AI, Boeing, G
Iran’s Parliament Speaker Mohammad Bagher Ghalibaf mocked the Federal Reserve’s rate hike on Wednesday, posting a satirical “Straits Taylor Rule,” arguing that Iran controls the main driver of inflation. ‘You Can’t 25bp a Chokepoint’ In the post on X, he said he wrote his own version of the Taylor Rule, the standard economic formula central banks use to set interest rates, adding new terms specifically for the Strait of Hormuz and Bab el-Mandeb. 5(y−y*) + α(SOH−SOH*) + β(BEM−BEM*), α,β > 0,” he said.
He added that “you can’t 25bp a chokepoint,” arguing that the Fed’s neutral rate doesn’t account for what he says is the real driver of inflation: the risk premium tied to the two shipping corridors. 5(y−y*) + α(SOH−SOH*) + β(BEM−BEM*), α,β > 0 Let’s see if a hike could open SOH or produce a single barrel 🙂 You can’t 25bp a chokepoint and r* isn’t neutral. It’s SOH risk premium, and We set it. Stay unanchored!
00% on Wednesday, marking its first rate increase since 2023. S. 8% in July, driven largely by higher energy costs tied to the Iran war. Oil Prices Remain Elevated The war in Iran, which started in February, has disrupted global shipping and sent oil prices above $100 a barrel this month.
The Strait of Hormuz typically handles roughly one-fifth of global oil and LNG shipments, according to the International Energy Agency. S. 12. Gasoline and diesel prices have risen at the pump, prompting retailers like Costco Wholesale Corp.
(NASDAQ: COST ) to raise prices of their private-label motor oil and introduce weekly purchase limits. S. Central Command spokesman Capt. Tim Hawkins said the blockade of the Strait of Hormuz is “highly effective,” telling Al Jazeera on Wednesday that Iran doesn’t control the waterway and that roughly 900 million barrels of oil have passed through since May.
Treasury Secretary Scott Bessent has escalated “ Operation Economic Outcast,” a sanctions campaign aimed at cutting off Iran’s remaining financial lifelines. Read Also: Stocks Sink, 10-Year Yield Reclaims 5% as Warsh Delivers His Hawkish Show Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors. com