http://www.forexconspiracyreport.com/are-routine-interest-rate-increases-coming-back/
Are Routine Interest Rate Increases Coming Back?
In the aftermath of the 2008 market crash and Great Recession the U.S. Federal Reserve held interest rates at rock bottom lows for nearly a decade. Then, when they nudged rates up a quarter percent in December it was with the caution that rates would only go higher when warranted. But now, according to an article in Bloomberg Business, there is a so-called Fed chorus for a higher rate move, and soon.
The dollar rallied the most in nearly a month Wednesday as Federal Reserve Bank of St. Louis President James Bullard joined a growing chorus of policy makers emphasizing that the central bank may raise interest rates as soon as April.
The U.S. currency gained for a fourth day versus the euro in New York as Bullard said officials should consider raising interest rates at their next meeting amid a broadly unchanged outlook for the U.S. economy. San Francisco Fed President John Williams and Atlanta Fed President Dennis Lockhart made similar comments about the April gathering earlier this week.
The Fed is charged with controlling inflation among its other chores. The low price of crude oil and petroleum products has helped keep prices low. But the Fed knows that once inflation gets going that it can take two years or more to control it. So the better choice is to say ahead of the curve with higher interest rates. The recent years are an exception as the Fed is typically willing to routinely raise interest rates when needed. Are routine interest rate increases coming back? Would that mean a increasingly stronger dollar?
The Effects of a Stronger U.S. Dollar
The Wall Street Journal reports that U.S. dollar strength is sending shares in Asia downward and having the same effect on commodities.
4. http://www.forexconspiracyreport.com/are-routine-interest-rate-increases-coming-back/
Before We Continue…
Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy Report
Read every word of this report!
http://www.forexconspiracyreport.com
Get 12 Free Japanese Candlestick Videos
Includes training for all 12 major candlestick signals.
http://www.candlestickforums.com