Bullard Raises Stakes as Gold and Oil Prepare for War

And although traditionally all the headlines are devoted to divination around Ukraine, we should not forget about the tectonic shifts taking place in the global financial system. This, of course, is about changing the vectors of the monetary policies of the Central Banks and, first of all, the US Federal Reserve.

So St. Louis Fed President James Bullard said that by July the Fed's rate should be raised by at least 1% in order to curb inflation. As a result, according to CME, the markets estimate about 55% chance that this year the rate will increase seven (!) times.

In our opinion, this entire information war around Russia’s attack on Ukraine is an attempt to divert attention from what is happening in the financial markets, and at the same time write off falling stock market prices for a war, albeit possible, albeit in the minds. Who is now blaming the Fed for the fall of the same Nasdaq by more than 2,000 points over the past month or so?

But God bless them with conspiracy theories. For their main charm is that they can be generated indefinitely, but they don’t give much real understanding of what is happening.

On the other hand, looking at the dynamics of oil and gold, it is obvious that even a virtual war should not be ignored as long as the markets believe in its real embodiment. Oil continues to creep towards $100 per barrel of Brent. As we believe the information war has reached its peak, oil prices are also at their peak.