Fed can not let dollar fall

[myminitrading]

The US Federal reserve must support the dollar, the countries that have supported our record debt will not tolerate much more weakness in this currency. I suspect the fed to talk tough on inflation to support the dollar, stock market be dammed.

 

[zdreg]

absolute nonsense. if i owe the bank enough money i own the bank.

the dollar has lost 40 per cent against the euro in the last few years. goldman is short the dollar. paulson is from goldman. understand?

 

[zdreg]

Quote from myminitrading:

The US Federal reserve must support the dollar, the countries that have supported our record debt will not tolerate much more weakness in this currency. I suspect the fed to talk tough on inflation to support the dollar, stock market be dammed.

exactly. talk and do nothing.

 

[Hydroblunt]

Quote from zdreg:

exactly. talk and do nothing.

Well, they are active in FOREX and will support the dollar with serious force when needed.

On the public level, they will just raise rates but on the real level, they get involved directly.

 

[drsteph]

Quote from zdreg:

exactly. talk and do nothing.

Ditto that. No change in US interest rates unless there is a catastrophic capitulation, then a 50bp drop to restore confidence.

Lots of talk about "we must remain vigilant about inflation." Even as deflationary pressures start raising their head again.

 

[Spectre2007]

the dollar is actually rallying against the pound and getting smacked versus the yen and neutral to bullish against the euro.

Mostly its just unwinding of the carry trade. No bearish sentiment yet. Which means all those gold buyers need to run for the hills.

 

[dinoman]

Unfortunately the Fed has no control over the dollar anymore.

 

[number22]

Quote from drsteph:

......, then a 50bp drop to restore confidence....

; i wish fed can raise its rate; not lower

 

[Bongo972]

The Fed and the BoE need to both raise rates 50bp, stock markets be damned.

 

[myminitrading]

Quote from Bongo972:

The Fed and the BoE need to both raise rates 50bp, stock markets be damned.

Agreed then folks would start saving again, we need the greedy banks to get in line and offer some decent rates for savers. America better start saving the Chinese own us.

The Fed will defend the dollar over the stock market, the stock market has had its run.