Are Fed rate Cuts bad for fuel

A cut in interest rates is good for fuel.

The Fed‘s rate cuts will increase liquidity, making and driving up asset prices, so commodities in terms of prices will directly benefit.

If the Fed raises, it will take dollars out of the market and raise them.

That’s bad news for fuel, which will lead to lower prices.

Conversely, if the Fed lowers interest rates, it will increase the number of dollars in the market and lower the dollar index.

That’s good news for fuel, which will lead to higher prices.