Commodity Futures trading Commission (CFTC) Acting Chairman Walt Lukken should be getting better at testifying before Congressional committees but appeared somewhat weary at yet another hearing on Tuesday morning. One Senator questioned how Lukken could respond that he was not sure of the effect of speculation on commodity prices after noting at past hearings that he thought supply and demand were the determining factors. Apparently the questions are wearing on Lukken and to be fair, it is the Senators who seem to have made up their minds regarding the role of speculation on prices. And based on some of their questions, they clearly have not conducted the level of research into the matter as Lukken has. Lukken however, should be happy that a consensus is forming to appropriate more resources to the CFTC. Sen. Dick Durbin (D-IL) has introduced legislation to increase the CFTC budget and reiterated that pledge at today’s hearings.

I guess we should come to expect more heat than light from such hearings but it is disturbing when members of Congress seem to present disingenuous arguments.

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