When the Federal Reserve lowers interest rates, it tends to diminish the appeal of fixed-income assets due to lower yields, prompting investors to seek higher returns elsewhere. This shift often leads to increased investment in commodities, including steel, as they offer a hedge against inflation and potential for speculative gains in a low-rate environment. For someone bullish on steel, a Fed announcement to cut rates could be particularly favorable, as it not only decreases the attractiveness of bonds and similar investments but also potentially weakens the dollar, making commodities priced in USD more attractive to foreign investors. This scenario can drive up the price of steel, benefiting investors who anticipated the move and positioned themselves in the market accordingly. The broader economic stimulation from lower rates, while encouraging spending and investment, also raises inflation concerns, further bolstering the case for investing in tangible assets like steel that can serve as a hedge against the eroding value of currency.
Looking for a 20% gain +.
We have started to see Mill pricing start shifting upward after a series of decreases.
Looking for a 20% gain +.
We have started to see Mill pricing start shifting upward after a series of decreases.
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Inflation rises sharply again in March, CPI shows, and raises doubt about Fed rate cut