# Fed rate cuts won’t be a major influence on commodity prices | Capital Economics

> Capital Economics argues that the Fed's renewed rate cutting would normally lift commodity prices, but weak fundamentals and already-priced easing will limit the effect. The note was published on September 19, 2025.

- Date: 2025-09-19 · published 2025-09-19T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/22760-fed-rate-cuts-won-t-be-a-major-influence-on-commodity-prices-capital-economics
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Lower US rates typically weaken the dollar and support commodity prices, but the analyst expects little lift here. Feed buyers should not expect rate cuts alone to drive meal or grain prices higher.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-04-30 | [Inflation-tolerant Fed will boost commodity prices \| Reuters](https://feedsoft.ai/events/47512-inflation-tolerant-fed-will-boost-commodity-prices-reuters.md) | +0.1% | -0.8% |
| DXY | 2024-02-29 | [Rate cuts are a boon for metals markets…eventually \| Oxford Economics](https://feedsoft.ai/events/31572-rate-cuts-are-a-boon-for-metals-markets-eventually-oxford-economics.md) | -0.5% | -0.1% |
| DXY | 2024-09-19 | [How commodity prices perform following rate cuts: Analysts](https://feedsoft.ai/events/28218-how-commodity-prices-perform-following-rate-cuts-analysts.md) | -0.1% | +2.1% |
| DXY | 2025-08-22 | [Commodity Prices Surge As Powell Signals September Fed Rate Cut \| FXEmpire](https://feedsoft.ai/events/23247-commodity-prices-surge-as-powell-signals-september-fed-rate-cut-fxempire.md) | -0.7% | -1.1% |
| DXY | 2025-09-20 | [Wall Street eyeing one big trade after Fed rate cut: Commodities](https://feedsoft.ai/events/22761-wall-street-eyeing-one-big-trade-after-fed-rate-cut-commodities.md) | +0.5% | +0.7% |

## Sources

- capitaleconomics.com: https://www.capitaleconomics.com/publications/commodities-weekly/fed-rate-cuts-wont-be-major-influence-commodity-prices

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.