Fed officials urge shift from rate cut bias on oil shock

Four Federal Reserve officials dissented against a policy statement this week, demanding the central bank abandon its bias toward cutting interest rates as oil prices hit $126. It was the most divided Fed vote since 1992, leaving the benchmark rate steady in the 3.50% to 3.75% range. For investors, the shift signals that geopolitical shocks may force rates higher rather than lower to contain 3% underlying inflation.

The End of the Easing Bias