Dovish Fed sets the stage for commodity prices to surge higher – What’s next? [Video]

After an explosive start to 2023, Commodity prices are finally undergoing a usual healthy correction that in turn, will set the stage for the markets next big move.

The most pivotal moment in monetary-policy history took place earlier this month – with Fed Chairman Jerome Powell switching the script from the year of inflation to the year of disinflation.

At the FOMC press conference on February 1, Powell didn’t just double down on his disinflation comments – he started his whole speech by citing that the “disinflationary cycle has begun.”

In fact, Powell used the word "disinflation," 13 times at his press conference, which is a significant turnaround from prior meetings.

And just in case anybody didn't hear him the first time around, Powell made sure to drop the word "disinflation" plenty of times during his speech at the Economic Club of Washington, this week.

Powell doesn’t live under a rock. He knows exactly what he's doing.

The Jerome Powell that markets became accustomed to throughout 2022 was nothing short of hawkish and made no effort to hide it. But since the Fed's meeting this month – a dovish Powell has started to emerge.

Traders thought they saw a dovish Powell at the FOMC press conference. But started to second-guess that dovishness as a mistake by the Fed chair.

Then… the dovish Powell made another appearance.

Two dovish Powell sightings on back-to-back weeks? That’s no fluke. That’s purposeful.

According to Goldman Sachs “Powell is purposefully shifting his rhetoric to signal that a pause on hikes is coming. And ultimately points to a Goldilocks moment that will spur huge upside for Commodity prices in 2023.

Whichever way you look at it, one thing is clear. Jerome Powell and his colleagues at the Fed have given a green light to the Commodities Supercycle. That’s welcoming news for the bulls, but painful for anyone sitting on the sidelines, who must now decide how much FOMO they can handle.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: