Conversely, when the Fed cuts the rate, commodity-flavored portfolios suffer more than those without commodities.
Stockmarkets in countries where interest-rate and commodity-price fears are combined, as they are in Latin America, have done especially badly.
Australia's economy expanded in the fourth quarter, capping 21 years of uninterrupted annual growth as commodity exports rebounded and rate cuts began to spur consumer spending.
This becomes all the more true when that price action is paired with a complete and total dissection of the interest rate, commodity and global stock markets.
Including, if you should so with, synthetics which all involve a currency transaction which mimics the movement of any bond, interest rate, stock, commodity.
FORBES: The European Financial Transactions Tax: An Interesting Detail
Indeed, without the recent fall in oil and commodity prices, America's inflation rate would have risen, forcing the Federal Reserve to raise interest rates.
New York Portfolio Clearing which is a startup clearing house co-owned by NYSE Euronext, has gained approval from the U.S. Commodity Futures Trading Commission to clear interest rate futures in the United States.
He is not short of bold ideas, including a global financial tax, the regulation of commodity derivatives and measures to limit exchange-rate volatility.
Also pushing up neutral, the pipeline of excess liquidity is still filling despite rate hikes, most visibly in commodity speculation and record levels of corporate cash.
And Charles Goodhart, a former MPC member, told Today presenter Evan Davis that higher commodity prices and a planned rise in the VAT rate "might make the inflation figures over the early winter pretty poor".
The precious metals and many other raw commodity futures markets did get a boost from the China rate-cut news Thursday.
FORBES: Comex Gold Weaker but Up from Daily Low After China Rate Cut; Bernanke Awaited
Recent sharp rises in commodity prices have been an important factor contributing to the rising rate of inflation in the UK and creating uncertainty for interest rate policymakers.
The fall in commodity prices has at least helped to cut Chile's inflation rate, from 9.9% for the year to October to 7.1% in December.
As commodity prices fall and growth slows, inflation should fall and interest-rate cuts should follow next year.
These headwinds include a stubbornly high unemployment rate, a disturbing trend of increasing jobless claims, elevated commodity prices, a lackluster residential real estate and increasing sovereign debt problems overseas and, as previously discussed, on our homeland.
FORBES: Forget About The Debt Ceiling Debate, Where's The Economic Growth?
That high exchange rate has made it hard for Brazilian companies not involved in the booming commodity sector to compete.
Commodity chip prices, particularly memory chips, will continue to fall at a modest annual rate of 30% before they stabilize in the middle of next year.
The Economist all-items commodity price index has risen by 21% in dollar terms since January 2002, its fastest rate of growth since 1994.
ECONOMIST: The prices of most raw materials have been surging
The Justice Department started investigating potential rate manipulation about three years ago, in conjunction with the U.S. Commodity Futures Trading Commission and the U.K. Financial Services Authority.
But, in recent months, a weakening of economic indicators and easing of underlying inflation pressures (falling oil, food and commodity prices) have led the central bank to take out its scissors and slash the borrowing rate (see: " An Ominous Signal From The Bank Of England").
应用推荐