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The Federal Reserve raised its benchmark rate by 50 basis points to 0.75%-1%, the largest hike in 22 years, and said it would begin shrinking its balance sheet in June. US stocks rallied and Treasury yields fell as the move was seen as less hawkish than feared, while crude oil jumped, with WTI settling at $107.81 and Brent at $110.14.
Higher US rates strengthen the dollar and raise borrowing costs, which typically pressures dollar-denominated commodities and feed costs, though the rally in crude lifts energy and diesel costs for feed transport and processing.
reuters.comHerbert LashMay 4, 2022After 487 past bullish macro events, Crude Oil (WTI) moved a median +1.0% over 5 sessions (60% higher; middle half -2.0% to +4.0%), and +1.5% over 20.
After 323 past bullish macro events, Crude Oil (Brent) moved a median +0.7% over 5 sessions (58% higher; middle half -2.9% to +3.7%), and +1.3% over 20.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% 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.
