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The Meeting That Never Happened

The Federal Reserve held interest rates steady and said the risk of inflation has grown but stopped short of signaling that higher interest rates were coming soon. The decision by the U.S. central bank, announced at the end of a two-day meeting, leaves the benchmark federal funds rate at 2 percent.

"Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased," the Fed said in its statement.

The Fed also said "overall economic activity continues to expand," though after its last policy meeting on April 30, it described economy activity as "weak."

So, how do Fed comments affect the commodities trade?

For insights we turn to strategic investor Dennis Gartman, author of The Gartman Letter. Following is a synopsis of his main points.

How do Fed comments affect the commodities trade?

The Fed's action was wholly anticipated, and so the effect upon commodity prices should be nil, says Gartman. It’s as if the meeting didn’t take place.

Thoughts on crude?

It’s important to note that crude performed well at the end of the day, observes Gartman. In fact, most things having to do with commodities did well after the Fed announcement. Anyone trying to take the short side of this trade will find themselves on the wrong side.

And gold?

With the dollar going down against the euro gold closed on its highs, says Gartman. I think it still goes higher in the morning.

Are you bullish coal?

We are the Saudi Arabia of coal and we’re learning how to make it burn cleaner. I think anyone who’s short coal will find themselves in a bad trade,. Weakness is to be bought.

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Trader disclosure: On June 25, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (AAPL), (ANR), (CHK), (NOK), (NVDA), (ORCL), (TSO), (XLF), (XTO), Najarian Owns (YHOO) Calls, (MYGN) Calls, (RIMM) Calls, (SLB) Calls, (UBS) Calls; Finerman Owns (GS); Finerman's Firm Owns (AXP), (MSFT), (PZN), (SUN), (TSO), (VLO), (KALU), (CYBX); Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Owns SPX Index Puts; Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY); Karen Finerman's Partner In Her Hedge Fund Is On The Board Of Cyberonics; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Terranova Owns (BNI), (CME), (FXC), (LUV), (GOOG), (INTC), (IYT), (XLF), (SU), (YHOO), (FCX)

Terranova is chief alternatives strategist at Phoenix Investment Partners;
Phoenix Investment Partners Ltd. Owns (RWX), (DBC), (DBV), (IGE), (AAI), (ALK), (AMR,) (APA), BP plc, British Airways plc, (CHK), (CVX), (COP), (CAL), (DAL), ENI SPA, (XOM), Gazprom, (HA), (HES), (HOC), (HSE), (JBLU), Lukoil, (MRO), (MUR), (OXY), Petrobras Intl Fin, Petro-Canada, (PBR), Petroleos De Venezuela, (QAN), (RJET), Royal Dutch Shell plc A Shares, (SKYW), (LUV,) (SU), (TSO), Texaco Capital, Total SA, (UAUA), (LCC), (VLO)

Gartman Owns (DIS), (ADBE), (PLL), (PBR), (MCD), (GLD), (FAX), (ATW), (EWC), (SDS); Gartman Owns (TOWN) And Is Short (WFC); Gartman Owns (BPT) And Is Short (BP); Gartman Is Short (XOM), (ING), (WFMI), (BA), (DRI); CIBC Gartman Index Owns Corn. Soybeans, Gold, Copper