Fed Verbal Guidance intentionally or unintentionally has heightened general market risk and uncertainty, especially in commodity markets. At the very least market participants must consider the possibility of a rate increase at the conclusion of the March 14-15 Federal Open Market Committee meeting.
A rate increase would likely be bullish the dollar and supportive of a higher interest rate. All things equal this would likely have a:
- Negative impact on commodity prices or hard assets in general, and
- Impede the global reflationary efforts
For Dr. Coats' thoughts on the markets, visit http://www.deltafarmpress.com/market-reports/markets-await-trump-s-presidential-address.