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US stocks rose and Treasury yields climbed after Powell said the Fed would target an average 2% inflation rate, allowing inflation to run above target for a time. The 10-year yield rose to 0.75%, and the S&P 500 set a new intraday high above 3,500.
Looser monetary policy and rising yields are a macro backdrop that can support commodities as inflation hedges, while a firmer dollar can weigh on them. The direct effect on feed prices is limited.
ft.comBryce Elder, Tommy Stubbington, Naomi Rovnick in London, Hudson Lockett in Hong KongAug 27, 2020After 4,478 past macro events, US Dollar (Broad) moved a median +0.0% over 5 sessions (51% higher; middle half -0.4% to +0.5%), and +0.1% 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.
