Fed to hike rates again? Energy prices force its hand.

The Federal Reserve is expected to raise interest rates one last time in the fourth quarter of 2026. The move is driven by rising energy prices, which continue to push inflation higher. Bank Indonesia (BI) predicts the hike as energy costs surge. Higher energy prices make it more expensive to produce and transport goods. This feeds into broader inflation, forcing central banks to act. The Fed has already raised rates multiple times in 2026. A final hike would aim to cool inflation without slowing economic growth too sharply.