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Is the Fed Being Hawkish Enough?

Posted on June 25, 2008

The Federal Reserve is getting ready to raise interest rates but a rate hike is not imminent. For the first time since August, the central bank has left rates unchanged at 2 percent. Although the FOMC statement is hawkish, the US dollar has failed to react because currency traders were looking for more. They wanted reassurance that a rate hike was around the corner, but what they got was the minimum that dollar bulls were looking for. It wasn t enough to send the dollar higher or to take it dramatically lower. The central bank hopes that slower growth will ease inflationary pressures, but if...

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central bank , currency , economy , fed , federal reserve , fomc , inflation , interest rates , the fed , us dollar