Falling oil drags stocks lower ahead of Fed meeting

The price of Brent oil fell to $37 per barrel as the International Energy Agency forecast a worsening outlook for the global supply glut following last week’s OPEC meeting where no production cuts were agreed. In theory, this should be good news for consumers but the lower cost of living that results will ultimately show up in lower inflation figures. Indeed, US inflation data is out tomorrow.  An improvement to 0.5%, up from 0.2%, is anticipated and only a massive shortfall would undermine the case for raising interest rates which is what most of the market is expecting the Federal Reserve to do on Wednesday.