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Analyst concerned about volatile interest rates

A market analyst is concerned about how interest rate volatility could impact farming operations.

Elaine Kub says she expects the Dollar to remain weak during the COVID-19 pandemic, which benefits U.S. ag exports.

“But there’s certainly the potential that when you allow this target inflation rate averaging, there could be the potential that there could be wild swings like there were in the 1980’s.”

She says while no one expects that, it is possible in an inflationary environment.

“Where there’s the quantitative easing coming into the system, you could have interest rate volatility that could have sudden rises or sudden change in the foreign currency markets.”

Kub made these comments during last week’s Women in Agribusiness virtual summit.