Wolfteam LTD.'s corporate view is that the Federal Reserve will go on raising the the target for the Federal Funds Rate past 7.00 %
The rise of inflation is not over. There are too many global bottlenecks in the global economy and the military encounters in Eastern Europe and the Middle East are only exposing them.
Oil, base metals, wheat, corn, gold, silver, coffee, cotton, soy beans, orange juice and other commodities prices will continue rising influenced by global geopolitical tension.
Wolfteam LTD. holds the view that we are in a new super cycle in commodities. Base metals and oil form large parts of human lives like construction, mobility, chemicals, industrial components etc.
With all the newly created money around, the excess liquidity will funds its way into commodities.
What is more, the Federal Reserve is aiming to trigger a recession or significant economic slowdown possibly by causing havoc in the banking system. Possible candidates are Deutsche Bank, Citigroup due to the financial restructuring problems both banks are experiencing.
The Federal Reserve could aim to slow down private equity activity, which will also be reflected in higher delinquency loans for banks.
In short, global interest rate levels will go on up further from the current standpoint.
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