Interest Rates & Central Banks
QUESTION: Marty, do you think the Federal Reserve is listening to you when you say that raising rates will not bring down energy prices? Socrates did not show any Directional Change here in October. Bill ANSWER: Perhaps. All central banks are caught between a rock and a very hard place. They are e
Source: Armstrong Economics
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DW NOTE
The Fed raised rates to 3.90% in September. The Strait of Hormuz has been effectively closed since late October, WTI is up 71% year-over-year, and the overnight rate is staying put this week. Armstrong is correct that higher rates don't cure a supply shock — they just make it more expensive to finance inventory you can't get anyway.