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Oil Slides As Federal Reserve Keeps Interest Rates At 2pc

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http://www.telegraph.co.uk/money/main.jhtm...6/bcnoil106.xml

Crude oil prices continued their retreat from record high as traders bet that a year of record prices will eventually hit demand.

In New York, crude was trading at about $118.10 a barrel and is now down almost $30 from its record highs reached earlier in the summer.

Despite the oil price ending its upward march, few analysts oil to drop below the $100 a barrel mark. Tobias Merath, an analyst at Credit Suisse, said: "There's concern about fading demand because of economic slowdowns in the US, Europe and now even China."

Mr Merath added: "It's a correction, not a collapse, and we are halfway there."

Continued evidence in Europe and the US that demand is falling in response to higher prices and weak economic growth has pushed down prices.

Despite the drop in oil and the price of other commodities, the US Federal Reserve yesterday left interest rates at 2pc. The Federal Reserve's Open Markets Committee (FOMC), chaired by Ben Bernanke, agreed to hold rates for the second month in a row as it continued to battle low economic growth and rising inflation.

The Federal Reserve's Open Market Committee noted in explaining the decision that inflation has been high, "spurred by the earlier increases in the prices of energy and some other commodities", adding that "some indicators of inflation expectations have been elevated".

Although the committee reiterated its view that it expects inflation to moderate later in the year, it said that the inflation outlook remains "highly uncertain".

In other words the FED really hasn't got a clue what's going to happen all the expensive computer modelling we use to predict the future clearly doesn't work and we are having a guess that inflation will moderate, however we could be wrong on this. Anyone got a coin to toss?

I doubt Mystic Mervs economic guessing models are any better.

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http://www.telegraph.co.uk/money/main.jhtm...6/bcnoil106.xml

In other words the FED really hasn't got a clue what's going to happen all the expensive computer modelling we use to predict the future clearly doesn't work and we are having a guess that inflation will moderate, however we could be wrong on this. Anyone got a coin to toss?

I doubt Mystic Mervs economic guessing models are any better.

I would suggest that noone know how to predict the future

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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