Rate Hikes Might Do More to Hurt Economy than Ease Inflation -- Market Talk

1705 ET - Inflation is being driven up by higher energy prices, which aren't going to be quelled by higher interest rates, Seaport analysts Jonathan Golub and Patrick Palfrey say in a research note. Overheating demand isn't the problem, they say. Tighter monetary policy can bring down inflation, but it will do so by restricting access to capital, which will slow the economy and job growth, the analysts say. That's going to hurt the most-rate sensitive segments of the economy, like housing, autos and small businesses, they say. "It is designed to weaken labor demand, and pressure the consumer," the analysts say. (dean.seal@wsj.com)

(END) Dow Jones Newswires

September 24, 2026 17:05 ET (21:05 GMT)