Someone on Bloomberg said Fed was going to cap oil

Discussion in 'Energy Futures' started by Aaron Copland, Mar 11, 2008.

  1. Can they do that? Can the fed put a cap on oil prices?
  2. By mandate, no way. Drastically raising interest rates might slow its rise and cause short term reversal, but the FED cannot do anything to oil prices directly.
  3. Hypothetically, the FED could "interdict" in crude oil futures and merely offer-the-market-down penny after penny after penny until panic selling kicks in and cover its short positions many dollars lower.
  4. No - oil is a global market, and they have no control over it. When it comes to oil, the US are rule takers not rule makers.
  5. Today was designed to help the credit markets and cap commodity prices. The market is looking for less ff reductions. I think oil is going to come off really big soon
  6. Please enroll in an Economics course that covers the Fed and Monetary Policy.

    You have been asking some of the most idiotic questions today.

    The Fed has nothing to do with commodities and 99.9% of the people out there understand this.
  7. Aok



    The US govt tried to cap plywood futures prices back in the 70's. Abject failure.

    The Fed has even less power to stop the House of Saud. Plus oil is a wasting commodity and Chindia wants it, will take it, and bid it. Price is not going down. But the working man's bank account will
  8. they need to force Bush's hand in the matter....

    they also need to release the SPR.....

    they need to relieve the tensions between Iran, Iraq and the other oil producers.....if possible, and it really is!

    all these reasons why they can't are excuses to prop up the price and continue to destroy the US economy....

    simply put, they win by default....

    yeah, default (bankruptcy) of the US consumers
  9. bettles


    I seem to recall Nixon having a price freeze in effect for certain things at one time. Economic laws say that a price freeze, if enforced, will lead to shortages.
  10. Never, the Govidiots do not have the power to "CAP" Oil.

    THey can roll back "TAX" on gas. THat may happen.

    But Oil is up up up and away.

    Private Equity (accredit Investors)is all over Domistic Oil Projects right now. The best time to be in the Business.
    #10     Mar 11, 2008