Further Fed rate hikes risk policy error due to exogenous inflation drivers

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Despite market expectations for further rate hikes, continued tightening by the Federal Reserve, specifically a 25 basis point increase, risks a policy error because current inflation is largely driven by exogenous factors like energy costs and geopolitical events, particularly the Middle East conflict affecting energy and commodity prices, rather than internal economic overheating. Such interventions are unlikely to help and could harm those needing support, even with strong economic growth and