http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/ Yellen’s Comments Take the Dollar Down The US dollar is at its lowest level since last September after Fed Chairman Janet Yellen testified before congress. Bloomberg reports on the results of Yellen’s comments. The dollar fell against all its Group-of-10 peers after comments from Federal Reserve Chair Janet Yellen on inflation spurred investors to lower their expectations on the pace of U.S. rate increases. The Bloomberg Dollar Spot Index tumbled to its lowest level since September after Yellen told the U.S. Congress Wednesday “there was uncertainty about when and how much inflation will respond to tightening resource utilization”. The euro led gains on expectations the European Central Bank could send hawkish signals at its meeting next week while the pound also rose after the Bank of England’s Ian McCafferty suggested in an interview with The Times he favored faster unwinding of quantitative easing. If the Fed follows through with a more dovish approach to monetary tightening they may be left behind in the Forex race to the top. Now that economies are growing, central banks across the globe are unwinding their QE policies by raising rates and in the case of the Fed letting bonds come due and depositing the money back in the US treasury. Now the previous Forex race to the bottom is turning into a Forex race to the top. To the extent that a too-strong US dollar hurts American exports it might be a good thing for American manufacturing to see the dollar slide a bit versus other currencies. The American Economy and Inflation or Not Raising interest rates is what the Fed does to stave off inflation. Years of quantitative easing have made money cheap to borrow and distorted markets. The Fed has been slowly raising rates and talking about reducing its bond portfolio in order to return the economy to a more normal footing. And investors have assumed that Donald Trump and the Republicans were going to follow through on their promises to stimulate the economy with tax cuts, infrastructure spending, repatriation of offshore corporate cash and deregulation.

1. Yellen’s Comments
Take the Dollar Down
By www.ForexConspiracyReport.com

2. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
The US dollar is at its lowest level
since last September after Fed
Chairman Janet Yellen testified
before congress.

3. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
Bloomberg reports on the results
of Yellen’s comments.

4. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
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5. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
The dollar fell against all its
Group-of-10 peers after comments
from Federal Reserve Chair Janet
Yellen on inflation spurred
investors to lower their
expectations on the pace of U.S.
rate increases.

6. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
The Bloomberg Dollar Spot Index
tumbled to its lowest level since
September after Yellen told the U.S.
Congress Wednesday “there was
uncertainty about when and how
much inflation will respond to
tightening resource utilization”.

7. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
The euro led gains on expectations
the European Central Bank could
send hawkish signals at its meeting
next week

8. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
while the pound also rose after the
Bank of England’s Ian McCafferty
suggested in an interview with The
Times he favored faster unwinding
of quantitative easing.

9. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
If the Fed follows through with a
more dovish approach to monetary
tightening they may be left behind
in the Forex race to the top.

10. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
Now that economies are growing,
central banks across the globe are
unwinding their QE policies by
raising rates and in the case of the
Fed letting bonds come due and
depositing the money back in the
US treasury.

11. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
Now the previous Forex race to the
bottom is turning into a Forex race
to the top.

12. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
To the extent that a too-strong US
dollar hurts American exports it
might be a good thing for American
manufacturing to see the dollar
slide a bit versus other currencies.

13. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
The American Economy
and Inflation or Not

14. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
Raising interest rates is what the
Fed does to stave off inflation.

15. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
Years of quantitative easing have
made money cheap to borrow and
distorted markets.

16. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
The Fed has been slowly raising
rates and talking about reducing its
bond portfolio in order to return the
economy to a more normal footing.

17. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
And investors have assumed that
Donald Trump and the Republicans
were going to follow through on
their promises to stimulate the
economy with tax cuts,
infrastructure spending, repatriation
of offshore corporate cash and
deregulation.

18. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
However, these promises have been
slow to come as the White House is
mired in political and legal disputes
of its own making.

19. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
Thus the inflation that was expected
to come with healthy economic
expansion is not happening and that
is why the Fed is readjusting its
plans for interest rate increases both
in speed and in quantity.

20. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
We wrote recently about how
the US will not hit Trump’s 3%
growth target without running the
federal debt even higher than it is
today.

21. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
The IMF calls Trump’s growth
target unlikely and cuts their
projection for US GDP growth for
both 2017 and 2018 to 2.1%.

22. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
The world’s biggest economy will
probably have a hard time hitting
Trump’s target of 3 percent annual
growth as it’s faced with problems
ranging from an aging population
to low productivity growth

23. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
and with a labor market already
back at full employment, the fund
said in its annual assessment of the
U.S. economy released Tuesday.

24. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
As Yellen’s comments take the
dollar down they are simply a
verification of what is apparent

25. http://www.forexconspiracyreport.com/yellen%E2%80%99s-comments-take-the-dollar-down/
which is that the US economy is
growing so slowly that inflation is
not a huge risk at the present time
and as such the Fed is unlikely to
move very fast or much farther in
raising interest rates.