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Strategies & Market Trends : The coming US dollar crisis

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To: sea_biscuit who wrote (1174)9/28/2007 11:09:50 AM
From: John Carson  Read Replies (1) of 71455
 
No, I think it means that the Fed will see the benign inflation data and be more likely to cut rates again in October since there is no evidence of inflation heating up yet. On the other hand, if inflation did start to heat up, the Fed might think twice about cutting again. Currency traders are accounting for all this, if Ben cuts again, that means inflation more likely, lower dollar. The dollar might drop so low here that the Fed may not be able to cut rates even with no indication of inflation right now. The stock market will not like that, it seems they are already beginning to price in that second rate cut in October up until today.
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