Disliked{quote} Textbook answer is rate hike raises dollar, rate cut lowers dollar. But a rate hike is not a black and white issue if raising it hurts the overall economy. If money gets too expensive it causes an economic contraction, stock market drops, consumption declines, exports decrease, price of mortgage and business loans go up, deflation because of lower demand and less money supply, unemployment rises, etc. It's a balancing act. Fed needs to raise rates though because of the bubble. At the moment, they are out of ammo if it collapses. It's a tricky...Ignored
thank you Scott super valuable words so Ic an more and more understand all these dynamics
much appreciated