John Caruso, Senior Market Strategist at RJO Futures, explains why the Fed’s recent

25-basis-point cut is “risk management” and why another 25 basis points may come in October

and December. He describes how monetary and fiscal policies are creating a reflationary

backdrop in the U.S. and globally, making the Fed’s path back to 2% inflation long and

uncertain. Caruso highlights the structural headwinds facing the U.S. dollar, why deficits and

debt keep pressure on policymakers, and how this environment supports commodities, with gold

breaking out and silver gaining strength.