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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: russwinter who wrote (60199)5/3/2006 1:41:40 PM
From: Wyätt Gwyön  Read Replies (3) | Respond to of 110194
 
They may decide to set them higher than the Fed ever would, so as to support all the USD holdings they own.

i thought the FCBs' support for USD has caused rates (esp. long rates to stay low). if they allow rates to rise, then isn't this also going to be the same as not buying USD, so USD holdings will tank anyway? question is, how do they raise US rates without allowing USD to fall.