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USD: End of Rate Cut Cycle?

  • #1
  • First Post: Mar 23, 2008 3:27pm Mar 23, 2008 3:27pm
It seems that there was considerable disagreement at the last FOMC meeting. Many were expecting a 1% cut. Could this signal a shift in focus to inflationary problems? It seems to me that if the fed were to keep rates steady at the next meeting, we would be witness to an extreme strengthening of the USD against the EUR. Similar to the moves in the Late 80s, early 90's. But then again, how would Wall Street react? Bernanke continues to walk a tight rope...

Your thoughts?
  • #2
  • Mar 23, 2008 3:32pm Mar 23, 2008 3:32pm
yes this is the end of the rate cut cycle, from here we will see considerable dollar strength over time for the specific reason that the

PPI [or PMI, forgot the exact term] at 2.2% is almost equal to the interest rate of 2.25%

there was a specific research article on this subject by saxo bank, need to locate that.
  • #3
  • Mar 23, 2008 4:07pm Mar 23, 2008 4:07pm
Yes, please, if you could locate this, that would be great!
  • #4
  • Mar 23, 2008 4:13pm Mar 23, 2008 4:13pm
Roun Paul lesson to Bernanke... and Bernanke laughs... Do you see Bernanke smile at the end ?

watch:
Inserted Video


that's why they don't care about the dollar...
  • #5
  • Edited 7:35pm Mar 23, 2008 7:21pm | Edited 7:35pm
this just beginning....

you ain't seen nothing yet
  • #6
  • Mar 24, 2008 2:15am Mar 24, 2008 2:15am
Quoting emda
Roun Paul lesson to Bernanke... and Bernanke laughs... Do you see Bernanke smile at the end ?

watch:
http://www.youtube.com/watch?v=d7MH8nExOhY

that's why they don't care about the dollar...
that was entertaining! thanks for posting.

the detail I like is when he said "we were under specific directive from congress..."

this is when Bernanke became "Bailout Ben": unlike Greenspan, he's more likely to answer to the requests of politicians than to economic analysis.
  • #7
  • Mar 24, 2008 2:10pm Mar 24, 2008 2:10pm
Quoting digitil
that was entertaining! thanks for posting.

the detail I like is when he said "we were under specific directive from congress..."

this is when Bernanke became "Bailout Ben": unlike Greenspan, he's more likely to answer to the requests of politicians than to economic analysis.

But do the politicians (in general) know something about economy ?
scary..
  • #8
  • Mar 24, 2008 2:46pm Mar 24, 2008 2:46pm
Quoting emda
Roun Paul lesson to Bernanke... and Bernanke laughs... Do you see Bernanke smile at the end ?

watch:
http://www.youtube.com/watch?v=d7MH8nExOhY

that's why they don't care about the dollar...
Did Bernanke say that as long as Americans buy things that are priced in US dollars (like good little boys and girls), then dollar weakness doesn't matter??????? Taken within context, that is probably the dumbest thing anyone has ever said.

This man is the leader of the most powerful central bank in the world??????

I am speechless.
  • #9
  • Last Post: Mar 24, 2008 2:53pm Mar 24, 2008 2:53pm
Quoting fierceman
Did Bernanke say that as long as Americans buy things that are priced in US dollars (like good little boys and girls), then dollar weakness doesn't matter??????? Taken within context, that is probably the dumbest thing anyone has ever said.

This man is the leader of the most powerful central bank in the world??????

I am speechless.
not only that... but in all the recent meetings.... his voice was jittering... and very insecure of what he was saying... even him couldn't believe what was going out of his mouth...
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