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The Federal Reserve held its benchmark rate at 5.25%-5.50% and said it would not cut until inflation was moving sustainably toward 2%. Treasury yields and global equities fell sharply after the statement, and the dollar rebounded.
Oil also fell on weak Chinese economic data and a US crude stock build.
A delayed Fed easing path keeps the dollar firm and borrowing costs high, which weighs on commodity demand and financing. Lower oil prices feed directly into biofuel and feed-freight costs.
reuters.comHerbert LashJan 31, 2024After 565 past bearish macro events, Crude Oil (WTI) moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
