This time urged by new record low Fed target interest rates (0.25%), the US dollar has resumed sliding steeply against foreign currency such as the Euro and Yen (vs. which it is at a 13 year low).
It seems that the Fed is more interested in artificially boosting the NYSE above a certain limit (some speculate that the government will do anything to keep it above 8000) rather than take the bitter pill of deflation (which, if prolonged has it's own serious problems).
This is certainly bad news for the US dollar (and thus the US) long term, and one can only hope that the rate cut is a temporary measure and will be reversed once a reasonable market turnaround occurs.
Desperate times call for desperate measures, some may say, but the US dollar just reeks of desperation right now.
Further reading: Bloomberg
Showing posts with label Fed. Show all posts
Showing posts with label Fed. Show all posts
Wednesday, December 17, 2008
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