Inflation Fears Spark Rally in Gold and Oil, Casting Doubt on Fed's Strategy Recent data indicating persistent inflation has impacted financial markets, with a notable rise in consumer price index (CPI) causing stocks and bonds to fall. In response, investors have turned to gold, oil, and cryptocurrencies as safeguards against inflation, leading to a rally in these assets. This movement has raised the yields on 10-year Treasuries to their highest since November and decreased the S&P 500 by about 1%. Energy companies, benefiting from the situation, remind us of strategies used in previous inflationary periods. The increasing prices in commodities, combined with geopolitical tensions, have fueled doubts about Federal Reserve Chair Jerome Powell’s ability to achieve a “soft landing” for the economy. Critics argue that the recent surge in asset values is counterproductive to the Fed’s efforts to control inflation, encouraging excessive spending among consumers and investors. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts U.S. Jobless Claims Hold Steady, Suggesting Strong Labor Market READ MORE Precious Metal Continue Climbing on Expectations of Rate Reduction READ MORE Investors Warn AI Boom Obscures Broader Tech Sector Struggles READ MORE Bond Traders Eye Possibility of 50 Basis Point Fed Rate Cut After Inflation Data READ MORE ZeroHedge: Javier Milei Ended a DC-Sized Deficit in…Nine Weeks READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment