The Fed and Commodities Prices

If anyone has any doubt about the impact that Fed Chairman Bernanke's testimony had on commodities prices today, here is one of many examples that could be shown. This is today's chart for cotton. Note that the price of cotton exploded much higher at precisely the hour the Ben Bernanke released his prepared statement and began testifying before the Senate Banking Committee. Many other commodities prices reacted similarly (see grains and crude oil charts in my previous posting today). All Americans need to understand that the Fed is a primary cause of inflation.