Commodity Margin Calls Pose Macroeconomic Risk, Dallas Fed Says
- Plunging liquidity in global markets concerns regulators
- Russia’s invasion of Ukraine has caused prices to surge
The open outcry pit at the London Metal Exchange in London, on Feb. 28.
Photographer: Chris J. Ratcliffe/BloombergThis article is for subscribers only.
Commodity markets should be tracked for potential macroeconomic risks, Dallas Federal Reserve analysts said in the latest sign that liquidity concerns in the sector have caught the eye of central banks and regulators.
“Ongoing developments in commodities should be monitored for potential impacts on financial conditions broadly,” according to the note from Dallas Fed economists, including Jill Cetina, who leads surveillance and supervisory risk analysis.