Fed Places Bets on Commodity Price Direction

October 5, 2022--Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The head of the Federal Reserve Bank in New York said softening of crude oil prices through September might not be enough to tame runaway inflation, comments that may be a concern given recent OPEC stimulus. Commodity prices are the main factor behind the spike in global inflation. The latest reading in the U.S. economy finds consumer prices increased 8.3% over the 12-month period ending in August. That's down a bit from previous months and was attributed to a 10.6% decline in the gasoline index used to calculate consumer prices.