hamburger wrote:i wonder who is being fed and what ? oil and gas are mighty tasty these days . hbg
I will speak to increased commodity driven inflation.
That is when Canada's overall stock market traditionally performs it's best i.e. when commodity prices rise faster than prices in general.
Both US and Canada's central banks are raising short term rates with that (at least partly) in mind.
What are my views on US and Canada's central banks being able to moderate and mediate inflationary trends through micro-management of short term rates?
..........you did ask, right?.......
..........They cannot!...........
They should leave rates relatively fixed, but slightly on the side of stimulus, unless extreme conditions arise, such as major stock market crashes, or hyper inflation, or hyper deflation.
Luckily US and Canada's central banks have no direct control over long term rates!
I contend in fact, that the micro-management of short term rates by US and Canada's central banks have actually exacerbated interest rate volatility, not moderated it.
As an aside the Canadian Central bank (some time ago) came out with the laughable claim that they were going to have an independent interest rate policy from the US. What a joke, and another example of misplaced nationalism, as both the US and Canada are intertwined economically as are their interest rates.
Of course Canada's independent interest rate policy from the US has come to naught, as any chart will show!
As Reyn would say:
Next question.........
As Chum would say:
'scuse the humor, it's a Canadian thing, eh