The Energy Report: Transitory Capitulation – Investing.com

The Energy Report: Transitory Capitulation – Investing.com

Oil prices were crushed on demand concern surrounding the Omicron variant of the COVID-19. They then got hit harder after Federal Reserve Board Chairman Jerome Powell told Congress that it was time to retire the term “transitory.” He said that transitory means different things to different people. What does transitory mean to you? I assumed that when it came to inflation it meant that it was temporary and would soon fade away. So, I guess instead of admitting that you were wrong about inflation being transitory, we just retire the word. I like that idea. I am going to think of some words I want to retire. Maybe instead of being wrong, I will say I was factually challenged.

The Fed chairman’s fond goodbye to the term "transitory," along with a promise to speed up the tapering of bond purchases, caused a big spike up in the dollar and caused the commodity complex across the board to get crushed. Yet, retiring the word "transitory" could mean that we put in a capitulation bottom both for oil prices and stocks after the massive sell-off we have seen the last couple of days. that dipped into bear market territory, are now putting