Copper just had a rough week, and it can thank the Federal Reserve for that. The industrial metal slid more than 1% on June 19 to roughly $13,655 per metric ton on the London Metal Exchange, dragged down by a hawkish Fed outlook and a US dollar that won’t stop flexing.
The sell-off wasn’t isolated to a single session either. By June 24, broader industrial metals followed copper lower as rate-hike bets intensified and the greenback continued strengthening.
The Fed’s dot plot tells the story
In mid-June, the median expectation among Fed officials shifted to at least one rate hike in 2026. Nine of 18 members predicted at least one increase. In March, that number was zero.
That pivot didn’t materialize out of thin air. New Fed Chair Kevin Warsh, nominated in early 2026, brings a historically hawkish reputation to the role. His appointment has accelerated a broader market repricing toward tighter monetary conditions, and copper is feeling the squeeze.
