2024-03-25 15:43:17 ET
Summary
- Commodity prices, particularly oil and gasoline, could rise if the Fed signals a willingness to let inflation run hot and cut interest rates.
- The Energy Select Sector SPDR ETF (XLE) is testing its all-time high, suggesting a potential breakout and significant rally if oil and gasoline prices increase.
- Exxon and Chevron, which make up a significant portion of the ETF, would also benefit from rising oil and gasoline prices.
If the Fed is sending a message to the market that it is willing to let inflation run hot and wants to cut interest rates regardless of inflation hitting its 2% target, it seems only natural that commodity prices will rise from current levels....
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XLE: Surging Oil And Gasoline May Send The Energy Sector To New Highs