RSM Economist Brusuelas Predicts Fed Rate Hike in September Amid Oil Surge

Joseph Brusuelas, chief economist at RSM, stated that the Federal Reserve will hold interest rates steady at next week's meeting but will implement a rate hike in September. Brusuelas explained that rising US gasoline prices will amplify concerns about serious purchasing power issues among Americans. International oil prices surged approximately 7% amid fears of potential blockades at the Strait of Hormuz and the Bab el-Mandeb Strait in the Red Sea, with Brent crude surpassing $100 per barrel.

Brusuelas Links Fed September Rate Hike to Gasoline Price Surge

Brusuelas posted on his X account that rising US gasoline prices will intensify anxiety about serious purchasing power problems facing the public. He noted that traffic volume is declining in the Strait of Hormuz and Bab el-Mandeb Strait while hostilities are intensifying. Brusuelas assessed that rising Treasury yields driven by inflation concerns serve as a substantial factor in predicting future Consumer Price Index (CPI) increases. He added that it is important to remember that rising prices include not only crude oil but also refined products such as diesel and jet fuel.

Brent Crude Surpasses $100 Per Barrel Amid Geopolitical Tensions

International oil prices surged approximately 7% due to concerns that the Bab el-Mandeb Strait in the Red Sea could be blockaded following the Strait of Hormuz. Brent crude broke through $100 per barrel.

FAQ

What did Joseph Brusuelas predict about Fed interest rates?

Joseph Brusuelas, chief economist at RSM, stated that the Federal Reserve will hold interest rates steady at next week's meeting but will implement a rate hike in September.

Why did international oil prices surge approximately 7%?

International oil prices surged approximately 7% amid fears of potential blockades at the Strait of Hormuz and the Bab el-Mandeb Strait in the Red Sea, with traffic volume declining and hostilities intensifying in these regions.

How high did Brent crude oil prices reach?

Brent crude surpassed $100 per barrel following the surge in international oil prices driven by geopolitical tensions in key maritime chokepoints.