The Fed

The Fed may be forced to raise interest rates to fight the rise in commodities. Just like the Fed was forced to slash rates to save the banking system the Fed may be forced to raise rates to keep commodities in check. The Fed may go back and forth between saving the banking system and to squashing commodity inflation. Depending on the month the Fed may move to the area that is more troublesome. Sort of like a fire department with limited resources that is forced to put out too many fires at the same time. It will move to whichever fire is strongest at the moment. This is just my opinion. I have taken this view because of the move commodities have had ever since the Fed has cut rates. We will see what the Fed does tomorrow. What a tough job.