As the FED warns of imminent attempts to put the brakes on inflation, market watchers continue to speculate on the repercussions.
The main question on everyone’s mind is weather the dollar will keep falling or will a slow rise in US interest rates and perhaps a decline in EU rates push the dollar higher? My bet is that the dollar is moving higher in the short run but to what extent that is going to effect energy, commodity, precious metals, and Ag I am unsure. I would look for the G-10 to make some kind of a joint strong dollar pronouncement, given how much the weaker dollar has damaged EU exports.
1 comment:
The Fed should just leave things alone. In this inviroment, the fed is caught between a "rock and a hard place" In fact the only true means of of getting out of the stagflation is let "high prices cure high prices" We need to let demand follow it's true course naturally. If the fed puts the breaks on then starts to raise watch out. Energies and Gold are already making a forcast. Look at the charts.
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Your blogs are very good. please reply back if there is an interest at Steve@marketedu.com
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