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Anna Wong points to China’s production cap as the main driver behind the recent surge in metal prices and the ISM manufacturing price index. She argues that tariffs are not the primary cause of these increases.
Wong’s comments suggest that supply-side measures in China play a significant role in global commodity pricing and manufacturing costs.
Wong’s perspective on China’s influence over commodity markets aligns with her earlier analysis of how the Federal Reserve’s stimulus actions, in response to a $10 oil price jump, impacted the U.S. 10-year rally. Her observations also highlight a persistent theme of uncertainty in policy communication, reminiscent of discussions on the lack of clarity in Fedspeak regarding r*.