Producers of metals and other raw materials fell as the dollar rose in the wake of minutes from the Federal Reserve's latest meeting.
Fed officials forecast robust economic growth in their most recent meeting while agreeing to provide continued support through ultralow interest rates and large monthly bond purchases.
The prospect of U.S. growth outstripping that in other parts of the world is pushing up the relative value of the dollar, which, in turn, weighs on commodity prices. Should U.S. growth ramp up to the extent that it spurs inflation, however, commodity prices could rebound.
In an annual letter, JPMorgan Chase Chief Executive Jamie Dimon said he did not anticipate an inflationary spiral. The current economic boom could last through 2023, thanks to a "Goldilocks" dynamic - rapid economic growth accompanied by inflation that's cool enough to allow low interest rates to persist, said Mr. Dimon.
"Clearly the market is monitoring ... the debate regarding whether or not a bump-up in inflation is temporary or is it in fact stickier," said Quincy Krosby, chief market strategist at Prudential Financial. With wholesale prices already on the rise worldwide, investors are trying to determine "ultimately, does it translate into higher prices for the consumer?"
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(END) Dow Jones Newswires
April 07, 2021 16:43 ET (20:43 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.