New Star: blame inflation on the Fed

Ward pointed to the correlation between US rate cuts since the autumn and the spike in the commodity prices since then. He asserted: "The Goldman Sachs commodity price index stabilised from mid 2006 as the Fed moved its target Fed funds rate above 5pc. The explosion upwards started only when the Fed went into reverse and cut rates aggressively from last autumn. Prices have risen by over 60pc in less than nine months - equivalent to the gain over the prior three years." He continued: "Commodity prices - particularly energy - may now be above the level needed to equate demand and supply...