Birinyi's Ticker Sense submits: Some of our readers have asked us if there is any relationship between the price of oil and short term interest rates.
Namely, do declines in the price of oil foreshadow economic weakness, and therefore future Fed rate cuts? While the theory sounds plausible enough, we found little evidence to support it. If anything, it appears as though declines in the price of oil follow fed rate cuts (although even there the evidence is spotty).
Namely, do declines in the price of oil foreshadow economic weakness, and therefore future Fed rate cuts? While the theory sounds plausible enough, we found little evidence to support it. If anything, it appears as though declines in the price of oil follow fed rate cuts (although even there the evidence is spotty).
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