MEMPHIS (Reuters) - The rout on global commodity markets is not a reflection of weak global demand as much as a predictable supply response to rising prices, St. Louis Federal Reserve President James Bullard said on Thursday.
Markets interpreting the fall in oil as a reflection of a weak global economy are overreacting, he said.
“I would not give it as much credence as markets. Only a small component of the movements in commodities can be attributed to global demand,” he said.
Reporting by Howard Schneider; Editing by Andrea Ricci