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Base Metals Advance as Fed Rate Pause Eases Demand Concerns
Key Points
Commodities Base Metals Advance as Fed Rate Pause Eases Demand Concerns Copper, aluminum and zinc rose after the US Federal Reserve left interest rates unchanged, easing concerns over industrial demand. Base metals had traded cautiously ahead of the meeting on fears that the Fed may increase rates with the escalation of the US-Iran war fanning inflationary risks. Higher borrowing costs typically weigh on economic growth and consumption, hurting demand from industries that use metals as inputs.
Commodities
Base Metals Advance as Fed Rate Pause Eases Demand Concerns
Copper, aluminum and zinc rose after the US Federal Reserve left interest rates unchanged, easing concerns over industrial demand.
Base metals had traded cautiously ahead of the meeting on fears that the Fed may increase rates with the escalation of the US-Iran war fanning inflationary risks. Higher borrowing costs typically weigh on economic growth and consumption, hurting demand from industries that use metals as inputs. The Fed’s decision wasn’t unanimous, however, with three of the 12 policymakers favoring a quarter-point increase to fight inflation.