Contrarian Finance

Check out this recent post, titled "Are Higher Oil Prices Passing Through?" on the Economics Blog on the WSJ. The Fed at this point seems to me to be either hopelessly lost or corrupt or both. Their basic strategy seems to be this:

1. We need to fight inflation, which is primarily driven at this point in time by rising fuel costs
2. The primary component of rising fuel costs is rising oil commodity prices
3. The primary component of rising oil commodity prices is the declining value of the dollar
4. SO, the we also needs to push the economy, so we'll lower the interest rate
5. Which in turn pushes the dollar lower, oil higher, gasoline higher, and feeds inflation

Am I missing something here? Seems to me the Fed isn't interested in fighting inflation at all.