Insight - Inflation-tolerant Fed will boost commodity prices

The side effect is likely to be a faster rise in commodity prices. (Oil palm trees being harvested at a plantation in Malaysia. - Filepic)

THE US Federal Reserve (Fed) has signalled it would tolerate faster inflation for a time to cement the post-pandemic recovery and boost employment, but the side effect is likely to be a faster rise in commodity prices.

The central bank appears anxious to avoid a repeat of the slow expansion and job gains that followed the financial crisis of 2008 by adopting a more aggressive approach to stimulating the recovery.