Will the Federal Reserve keep cutting rates?

The Federal Reserve has already cut the key Fed Funds rate by 325 basis points. The question now is whether this will continue into the summer, as Western economies continue to slow.

Investor uncertainty regarding the Federal Reserve's next move has manifest itself in a pause in the dollar's seemingly unending downward spiral on the world's foreign exchanges.

At the same time, poorly correlated assets, such as commodities, appear to have reached a plateau after a parabolic run over the course of the past five years. Whilst we accept that the sole cause of prevailing inflationary pressures is unlikely to be found deep in the futures' pits of Chicago (food riots around the world are clear evidence of the fact that stocks are dwindling, which might not be the case if this was purely a speculative bubble), speculation has undoubtedly helped drive both soft and hard commodity prices to these stratospheric levels.

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