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The Commodity Futures Trading Commission held hearings in the summer on limiting the investments in commodity index funds, and the Obama administration’s choice to lead the commission was in favor of following through. The index funds buy and sell huge numbers of contracts for future delivery of commodities, mainly oil. But the funds also pump billions of dollars into the commodity markets, which consumer groups and several energy-dependent industries said inflated oil and gasoline prices. The funds have soared in popularity, including with pension funds such as the Missouri State Employees’ Retirement System. Gensler, a former Goldman Sachs executive, in a speech in late October reiterated his interest in putting limits on the funds’ trading. Energy speculators and the commodity index funds took heat last year when gasoline reached $4 a gallon and oil prices spiked above $140 a barrel. read more

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