Iranian parliament speaker Ghalibaf posted ahead of the Fed decision a proposed
"Strait Taylor Rule": i = r* + π* + 1.5(π−π*) + 0.5(y−y*) + α(SOH−SOH*) +
β(BEM−BEM*), with α, β > 0. He wrote: Let’s see whether rate hikes can open the
SOH (Strait of Hormuz) or produce a barrel of oil. You cannot use a 25bp rate
hike to affect a strategic choke point, and r* is not the neutral rate; it is
the SOH risk premium set by us.
