Skip to main content

Fed tightening still a near-term threat, but can be offset

The gains in commodity prices after yesterday’s dovish statement could soon be more than reversed if the Fed presses ahead and raises rates earlier than the markets now expect, especially if the dollar climbs further. Nonetheless, our view remains that US monetary policy is unlikely to be tightened sufficiently to counteract other, more positive factors for commodities over the year as a whole.


Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.