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International
oi-Prakash KL
Iranian Parliament Speaker Mohammad Bagher Ghalibaf took aim at the Federal Reserve’s 25-basis-point rate increase, using a satirical version of the Taylor Rule that he called the “Straits Taylor Rule.”
In a post on X, Ghalibaf added variables tied to the Strait of Hormuz and oil barrels.
Iranian Parliament Speaker Ghalibaf criticized the Federal Reserve’s 25-basis-point rate increase to 3.75-4%, using a satirical “Straits Taylor Rule” related to the Strait of Hormuz, while President Trump claimed ongoing US-Iran talks amid conflict that began Feb 28.
He argued that a quarter-point hike could not address risks around a strategic chokepoint like the Strait of Hormuz. Ghalibaf also suggested the strait’s risk premium was not neutral and that Iran had control over it.
“Let’s see if a hike could open SOH or produce a single barrel,” he wrote, referring to the Strait of Hormuz. He ended the post with “Stay unanchored!” a play on the Fed’s use of the word “anchored” in discussions about inflation expectations.
The Fed raised rates by 25 basis points to 3.75-4%, its first hike in more than three years. The Kevin Warsh-led Federal Open Market Committee described the move as its first major step to tame persistent inflation. The increase matched market expectations.
In its policy statement, the Fed said economic activity continues to expand at a solid pace, supported by resilient domestic spending despite macro uncertainty. Job gains have largely kept pace with the workforce, and the median unemployment rate is projected to hold at 4.1% in both 2026 and 2027.
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
Meanwhile, President Donald Trump said Thursday the United States was “hopefully toward the end” of its war with Iran, while claiming direct talks were taking place. Tehran urged caution over diplomatic efforts. Trump said Iran “wants to make a deal” but did not give details on the talks or the Iranian officials involved. His remarks came as the conflict entered its seventh month and fighting continued across the region.
Iran has said any diplomatic process must guarantee its sovereignty and rights. Chinese Foreign Minister Wang Yi separately urged Tehran and Washington to show restraint and restart talks. Iranian Foreign Minister Abbas Araqchi said Iran is ready to defend its sovereignty while remaining open to diplomacy. Reuters reported the conflict began with an Israeli and US attack on Iran on Feb. 28, followed by Iranian retaliatory attacks on Israel and Gulf states with US military bases.
