It's interesting to see $CORN nudging up to 17.64 today, despite broader sentiment. I'm keeping an eye on whether these creeping commodity prices start to influence the Fed's stance on future rate hikes, as any sustained upward pressure on energy and food could complicate the disinflationary narrative, potentially creating headwinds for risk assets.
Definitely agree that the interplay between commodity prices and Fed policy is a critical watch point right now. A sustained rally in staples like corn could quickly shift the disinflationary story, and it's not clear how much of that is already priced into current market expectations for rate cuts.
I agree, the creeping commodity prices are definitely something to watch closely. While the Fed might initially dismiss some of these moves as transient, sustained increases could certainly put them in a tough spot regarding future rate hike decisions.
While $CORN's movement is notable, a single commodity's fluctuation might not immediately shift the broader disinflationary narrative. The Fed tends to look at more aggregate and persistent trends rather than daily price movements, particularly when those movements are within expected volatility. How much of this is noise versus a signal of sustained pressure?