Sep 21, 2014
Home| Tools| Blogs| Discussions| Sign UpLogin

Power Hour: What’s Ahead for Interest Rates?

September 18, 2012
By: Sara Schafer, Farm Journal Media Business and Crops Editor
Flying Money

The dollar plummeted last week. Two market experts discuss what that means for inflation.

Last week, the Fed announced its plan to buy $40 billion in mortgage-backed securities for an unspecified amount of time. Following the announcement, the U.S. dollar took a nosedive.

"We’re flooding the world with dollars," says Richard Brock, Brock Associates. A weak dollar makes our products cheaper, which is good for agriculture, he says.

But, what does that mean for the future?

Power Hour webThe market is signaling you have inflation coming, says Mike Florez of Florez Trading. "Commodities were sharply higher, but the bond market was in decline." He says normally higher-priced commodities with a lower bond market equal higher interest rates.

Brock disagrees. "A plummeting bond market typically signals higher inflation, but I don’t think that’s going to happen this time. If we start raising interest rates with the type of debt we’re building in this country, we will our economy weaken substantially in the long-term."

Brock and Florez discuss interest rates and other current market topics with Al Pell:


Part 1


Part 2

Watch more with U.S. Farm Report.


For More Information

Read and watch more Power Hour news, blogs and videos.

Visit AgWeb’s Market Center.


See Comments

Log In or Sign Up to comment


No comments have been posted



Receive the latest news, information and commentary customized for you. Sign up to receive Top Producer's eNewsletter today!

The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by|Site Map|Privacy Policy|Terms & Conditions