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Dollar down.(THE ECONOMY)(Brief article)
BAD things happen when the Fed overreacts to negative market psychology. The dollar's continuing slide is a case in point.
Markets have been in a tizzy since the subprime fiasco began, even though the housing market is a tiny fraction of the overall economy. While credit markets have had violent hiccups, the economy has nonetheless kept growing smartly. GDP growth was a whopping 3.9 percent in the third quarter. Yet the Fed cut the federal-funds rate 0.75 percent. The rest of the world saw this capitulation to the market's nervous Nellies as inflationary, and became less willing to hold dollars. If the Fed had acted correctly, responding to the state of the economy rather than to a state of mind, the dollar would be stronger today, and closer to its intrinsic value.
The Fed's inappropriate rate cut makes U.S. assets less attractive. But prices adjust in a free economy. Now that the dollar is lower, U.S. products will become more competitive. This will drive up exports and profits as well as the ...
- Dollar, Fed to determine if 2004 bond gains repeat.
- News wire article from: The America's Intelligence Wire December 31, 2004 700+ words
...analysts. The speed of the Fed's rate-hiking pace...Most forecasters expect a fed funds rate -- the central...25 percent. A weaker dollar, which has driven foreign...gained value against the dollar. For U.S. investors...in December pushed the Fed funds target above the...
- Repeat of bond market's 2004 gains tied to dollar, Fed.
- News wire article from: The America's Intelligence Wire January 6, 2005 700+ words
...based less on what the Fed did than most people...deficits and a weak dollar also raised questions...forecasters expect a fed funds rate -- the...domestic A weaker dollar drove foreign bonds...value against the dollar. For U.S. investors...December pushed the Fed funds target above...
- UPDATE 1-Dollar, Fed to determine if 2004 bond gains repeat.
- News wire article from: The America's Intelligence Wire December 31, 2004 700+ words
...analysts. The speed of the Fed's rate-hiking pace...Most forecasters expect a fed funds rate -- the central...25 percent. A weaker dollar, which has driven foreign...gained value against the dollar. For U.S. investors...in December pushed the Fed funds target above the...
- Will Falling Dollar or Fed Action Push Markets To Plus Side?, CNNfn.
- News wire article from: Analyst Wire December 8, 2003 700+ words
...meeting, falling dollar. Can the momentum...the markets, the Fed and everything else...by looking at the dollars continued decline...growth. Why does the dollar keep falling if the...Does this weak dollar fall in their radar...session. So when the Fed looks at the economy...
- UPDATE 3-Mixed day for dollar after Fed chief expresses caution.
- News wire article from: The America's Intelligence Wire August 26, 2005 700+ words
...MarketWatch) - A weak dollar for much of Friday...from Japan banks to buy dollars limited the downside...of these remarks, the dollar fell to 109.57 yen...delivered as part of the Fed's annual retreat in Jackson Hole, Wyo. The dollar finished the day at 110...
- UPDATE 1-Treasurys ease as dollar eyed, Fed awaited.
- News wire article from: The America's Intelligence Wire December 8, 2003 700+ words
...Monday as the Dow gained and dollar's tumble continued, while...move inversely to price. The dollar fell to another all-time euro...governments intervene to stop the dollar's drop, they're likely...debt. See Currencies. The Fed is not expected to change its...
- Euro rises against dollar as Fed expected to keep rates on hold.
- Newspaper article from: Gulf News February 25, 2007 700+ words
...strong foothold against the dollar, only to have marginally...since early January. The dollar's fall follows soft...expected comments from Fed Chairman Ben Bernanke...which revived talk of the Fed coming round to the idea...January supported the dollar as it reinforced the view...
- Gold futures climb; traders eye dollar and Fed.
- News wire article from: The America's Intelligence Wire June 25, 2003 700+ words
...therefore gold, is if the Fed did nothing," he said...scenario, equities and the dollar will "fall from the sky...he said. Still, "the Fed knows that GDP growth...affected by moves in the dollar because many investors...narrowly higher ahead of the Fed decision. The Dow Jones...
- Euro hits record high vs. dollar on Fed rate cut speculation.
- Newspaper article from: Japan Weekly Monitor March 2, 2008 700+ words
...investors dumped the dollar for the euro as they...late January, the Fed cut its key short...was firm against the dollar, said Masafumi Yamamoto...confidence index and Fed Vice Chairman Donald...be closely watching Fed Chairman Ben Bernanke...Dealers said the dollar in afternoon ...
- UPDATE 1-Gold futures climb; traders eye dollar and Fed.
- News wire article from: The America's Intelligence Wire June 25, 2003 700+ words
...therefore gold, is if the Fed did nothing," he said...scenario, equities and the dollar will "fall from the sky...he said. But, "the Fed knows that GDP growth...affected by moves in the dollar because many investors...narrowly higher ahead of the Fed decision. The Dow Jones...
Source: HighBeam Research, Dollar down.(THE ECONOMY)(Brief article)