# Fed tightening presents a difficult backdrop for prices | Capital Economics

> Most commodity prices have struggled to gain since the stronger-than-expected US August CPI release, which lifted Treasury yields and the dollar. Capital Economics expects a 75bp Fed hike at the upcoming meeting, with a 100bp move not ruled out.

- Date: 2022-09-16 · published 2022-09-16T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/39492-fed-tightening-presents-a-difficult-backdrop-for-prices-capital-economics
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A firmer dollar and higher yields weigh on dollar-priced commodities, including grains and feed ingredients, and make imports more expensive for buyers outside the US.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-01-28 | [Hawkish Fed a headwind for commodity prices \| Capital Economics](https://feedsoft.ai/events/43044-hawkish-fed-a-headwind-for-commodity-prices-capital-economics.md) | -0.9% | -0.6% |
| DXY | 2024-04-16 | [Fed rate cuts won’t send commodity prices soaring \| Capital Economics](https://feedsoft.ai/events/30631-fed-rate-cuts-won-t-send-commodity-prices-soaring-capital-economics.md) | +0.5% | -0.3% |
| DXY | 2019-06-07 | [Fed easing not a panacea for commodities \| Capital Economics](https://feedsoft.ai/events/58514-fed-easing-not-a-panacea-for-commodities-capital-economics.md) | -0.3% | -0.7% |
| DXY | 2025-09-19 | [Fed rate cuts won’t be a major influence on commodity prices \| Capital Economics](https://feedsoft.ai/events/22760-fed-rate-cuts-won-t-be-a-major-influence-on-commodity-prices-capital-economics.md) | +0.7% | +0.9% |
| DXY | 2021-06-18 | [Fed surprise points to further dollar strength \| Capital Economics](https://feedsoft.ai/events/5931-fed-surprise-points-to-further-dollar-strength-capital-economics.md) | -0.2% | +0.4% |

## Sources

- capitaleconomics.com: https://www.capitaleconomics.com/publications/commodities-weekly/fed-tightening-presents-difficult-backdrop-prices

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