Iran's parliament speaker taunts Fed over oil prices and inflation

Mohammad Bagher Ghalibaf, the speaker of Iran's Parliament, has used social media to criticize the US Federal Reserve's efforts to manage inflation, particularly its perceived inability to control oil prices. Ghalibaf posted a satirical version of the Taylor Rule, a formula central banks use to set interest rates, on X. His modified rule, dubbed the "Straits Taylor Rule," incorporated factors such as blockades in the Strait of Hormuz and the Strait of Bab el-Mandab, suggesting that Iran and its allies, rather than the Fed, are dictating oil prices and inflation levels. He specifically questioned the efficacy of a 0.25% interest rate hike in addressing supply-side issues driving up oil costs, stating, "You can’t 25bp a chokepoint." Ghalibaf asserted that the "SOH risk premium" is set by Iran, implying control over global energy markets. This commentary comes as the Federal Reserve, led by Chair Kevin Warsh, announced an interest rate hike. The post garnered significant attention on X, with comments from figures like French entrepreneur Arnaud Bertrand noting Iran's unique communication style.