I believe the magnitude of this commodity surge has likely shocked the Fed. There will certainly be some ramifications if this continues for very long. Frozen concentrated orange juice jumping by that much? If that isn't a sign of commodities strength I don't know what is. Nice charts!
Corey Rosenbloom
· 2 years ago
Aaron,
I'm with you. I don't think they expected it, else they probably would not have lowered the rate by 50 bps. If they have to raise rates to counteract some of the effects at the next meeting, my guess is that the market will... hmmm... how do I say this nicely... not like it?
From what the futures contracts indicate, yes Frozen OJ (concentrate) has soared about $15 in the last 3 weeks. Amazing. Most commodities are soaring - not just drifting higher.
All Comments
I'm with you. I don't think they expected it, else they probably would not have lowered the rate by 50 bps. If they have to raise rates to counteract some of the effects at the next meeting, my guess is that the market will... hmmm... how do I say this nicely... not like it?
From what the futures contracts indicate, yes Frozen OJ (concentrate) has soared about $15 in the last 3 weeks. Amazing. Most commodities are soaring - not just drifting higher.
Thanks for the comment and for reading!