Investing Opinion
One relatively easy way to get all sorts of commodities to behave themselves again: Raise interest rates. Under the hood, the recent commodity breakout reflects a high level of hedge-fund cynicism for the Federal Reserve and its ability to manage liquidity in the post-crash environment.
The Fed governors' reluctance this week to raise the discount rate reinforces that negative view. The vagaries of Washington politics, as well as the coming midterm elections, are clearly influencing current policy. The FOMC's timidity ahead of elections could be a huge mistake for the world economy.TheStreet Premium Services
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note |
|
|---|---|---|---|---|
| 12,454.83 | 1,317.82 | 2,837.53 | 17.45 |
Oil *
107.63
|
|
DOWN
74.92 |
DOWN
2.86 |
DOWN
1.85 |
DOWN
0.14 |
10 Yr
1.74%
SPDR Gold
152.68
|
|
-0.60%
|
-0.22%
|
-0.07%
|
-0.80%
|
Data delayed 20 minutes |
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