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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: mishedlo who wrote (29351)3/25/2005 1:15:39 AM
From: Elroy Jetson  Read Replies (2) of 110193
 
While higher interest rates will help the dollar, the author points out the many reasons why the Fed will experience problems raising them.

If Volker were running the Fed, I'd be betting on the US Dollar rising as his past behaviour makes it clear that he is willing to put the US through that level of pain.

Unless Greenspan's alter-ego emerges to do the same, I think he's going to lose his nerve before we get too far along the road to that higher dollar and drop rates back down. With Greenspan's temperment I fear this is a long drawn out ugliness similar to Japan.
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