"Failure is simply a few errors in judgment, repeated every day."
-- Jim Rohn
It seems that since end of last year the FOMC committee spearheaded by Jerome Powell tries to be dovish at nearly any cost. Politically motived or not (in the case of JP it likely is), it is what it is. It is interesting to observe that this Fed-dovishness comes at a time when the CRB index, a commodity index, is exceeding the September 2023 and November 2022 highs (top chart). The interesting bottom chart from Goldman Sachs shows how commodities have reacted when the Fed cut rates in a non-recessionary environment (one that presumably prevails today), proving 2-year treasury yields to drop by 100bp. Maybe an idea to implement some policy error hedges via Copper, Industry Metals and Gold longs?