The Fed will kill the dollar! Eventually!

Thursday, November 18, 2010
By Paul Martin

By Paul R. La Monica
CNNMoney.com
November 17, 2010

NEW YORK (CNNMoney.com) — It’s hard to find someone that isn’t criticizing the Federal Reserve these days. I keep expecting to see a press release from Lady Gaga in my inbox about why she thinks quantitative easing is the financial equivalent of a bad romance.

The big concerns among all the Fed-haters was that QE2 would keep long-term interest rates too low for too long and further weaken the already puny dollar.

But now that two weeks have passed since the Fed’s oft-lampooned decision to buy $600 billion in long-term Treasuries, it’s worth pointing out that the worst-case fears have yet to be realized. Bond yields are higher and the dollar has gotten stronger.

Let’s look more closely at the greenback. The U.S. Dollar Index has risen 3% since November 3, a move that probably would have been considered impossible a few weeks ago.

The Rest…HERENEW YORK (CNNMoney.com) — It’s hard to find someone that isn’t criticizing the Federal Reserve these days. I keep expecting to see a press release from Lady Gaga in my inbox about why she thinks quantitative easing is the financial equivalent of a bad romance.

The big concerns among all the Fed-haters was that QE2 would keep long-term interest rates too low for too long and further weaken the already puny dollar.

NEW YORK (CNNMoney.com) — It’s hard to find someone that isn’t criticizing the Federal Reserve these days. I keep expecting to see a press release from Lady Gaga in my inbox about why she thinks quantitative easing is the financial equivalent of a bad romance.

The big concerns among all the Fed-haters was that QE2 would keep long-term interest rates too low for too long and further weaken the already puny dollar.

NEW YORK (CNNMoney.com) — It’s hard to find someone that isn’t criticizing the Federal Reserve these days. I keep expecting to see a press release from Lady Gaga in my inbox about why she thinks quantitative easing is the financial equivalent of a bad romance.

The big concerns among all the Fed-haters was that QE2 would keep long-term interest rates too low for too long and further weaken the already puny dollar.

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