Fed jolts markets with a unanimous rate hike as gas prices climb and inflation stays high

… The Fed increases the short-term rate it controls to slow borrowing and spending and ideally cool inflation. The Fed’s rate can influence longer-term costs such as mortgage rates, but the Fed doesn’t directly control them. Warsh throws in towel on ‘temporary’ shocks ------------------------------------------- For months, Fed officials have considered whether [higher oil and gas prices](https://apnews.com/article/diesel-prices-record-iran-war-636252b3b82326b41661ee5c4073dacb) from the Iran war would just amount to a temporary hit to inflation. If so, it might not make sense to hike rates: By the time higher borrowing costs started to slow the economy, the gas price shock could be over and inflation would fall back to the Fed’s 2% target on its own. Related Stories [](https://apnews.com/article/mortgage-rates-housing-interest-financing-home-d57cc5a38163cfef3a7b2639dd3d8d7c) …