Oil drops to $59/bbl. Will it change the inflation forecast?
Posted By RichC on February 9, 2018
With the rapid drop in oil prices, and equal "10% correction" in the overall stock market, will improving wages offset by falling
commodities (oil) cause the Federal Reserve rethink their concern that inflation is picking up?
Current thoughts were that we could see three quarter point rate hikes in 2018 if the economy continues to pick up. But until inflation starts to really be a concern, three hikes could be premature?
My thought is that cheaper energy reduces the inflation concern and may relax the Fed’s concerned that the economy is overheating. We’ll see.
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