the fed

Folk,
Recent falls in world markets have come on the back of weak economic data in the US, which still accounts for a large proportion of world growth. Subsequent comments from Bernanke and other fed governors, have not only confirmed what the market feared but has also stamped the upward direction of interest rates in the next 2months or so. Bernanke is due to speak again on Friday and given the consistency of the message from all governors who have spoken in the last few days, I doubt that his message will change.
Of key importance to our market, is the Feds message that interest rates will continue to increase until energy and commodity prices are no longer a key inflationary source.
So in summary, imo either energy and metal prices will correct further and therefore negate the need for futher tightning or energy and metals continue to rise and risk further rises in interest rates. Either way the implication for our market is negative in the short term and we should see further falls, particularly amongst our miners.
H