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Strategies & Market Trends : CFZ E-Wiggle Workspace -- Ignore unavailable to you. Want to Upgrade?

To: Galirayo who wrote (6248)	4/16/2008 8:07:22 AM
From: Moominoid	Read Replies (2) \| Respond to of 41599

I think it comes down really to the Fed having little control over those prices through interest rates more than the volatility. Sure they can reduce US demand, but the US is only 20% or so of global GDP and so they'll have to cause a lot of pain to influence the price of oil or wheat. Though raising interest rates should push up the USD and reduce the prices of those goods in the US - helping big consumers and hurting everyone else - but a big move in the dollar would be needed to counteract recent moves in those commodities.