Marc Chandler – Market And Central Bank Reactions To Inflation, Geopolitical Pressures, And The Energy Sector
Marc Chandler, Managing Partner at Bannockburn Global ForEx and Editor of the Marc to Market website, joins us to discuss the reactions in the general markets, bond yields, and currencies after the hot CPI reading of 6.2% in the middle of this week. We delve into the trend in global central bank tightening policies and Marc postulates that the Fed may need to increase the pace of it’s tapering program, to be able to address market inflation concerns.
Next we look at the interesting phenomenon of the US dollar getting a bid on the back of higher inflation readings, and what may be happening on the short end of the yield curve to cause this. We review some of the significant geopolitical developments that have occurred recently that may have an effect on oil and natural gas sector. We wrap up with the sobering narrative that higher energy prices and short-term inflationary periods often precede recessionary periods.