In the end, every decision went in favour of the bulls - Escondida's miners went on strike, as did those at Voisey's Bay nickel mine, and the Fed did indeed choose to end (or pause) its run of interest rate hikes. From a supply perspective, the strikes crimp availability even further in what are already chronically tight markets. Meanwhile, from a demand perspective, the rate freeze was a relief to manufacturers and economists who feared that further hikes would put too much strain on the world's largest economy. It has already started to slow sharply, with Q2 GDP slumping to 2.5 percent from 5.3 percent in Q1, and it wouldn't take much for it to grind to a complete halt, especially with energy costs still rising. However, the Fed will remain watchful of inflationary pressures, and it is too early to rule out any further tightening later on.
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