0230 GMT - The oil-price surge reinforces a "higher for longer" rates narrative at the Fed, StoneX's Matt Simpson says in commentary. While Fed officials are widely expected to leave rates unchanged at this week's meeting, rising energy prices could complicate the rate-cut outlook, the senior market analyst says. The longer the Strait of Hormuz stays "technically hostile," the greater the chance that oil prices stay higher for longer, which also translates to a higher-for-longer narrative for the Fed's policy rate, he says. If the Fed reinforces this narrative, the U.S. dollar could stay supported as markets reassess the central bank's monetary policy trajectory, Simpson says. The U.S. dollar index is 0.2% higher at 99.929, LSEG data show. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
March 16, 2026 22:30 ET (02:30 GMT)
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