Ben Bernanke and Fed again send new signal to the market that they do not care about the dollar. After the not schedule FOMC meeting the Fed cut the key benchmark interest rates with 0.75% to 3.50%. This act was surprise for the market, as the traders expecting this event for January 30th. The Fed act very aggressively as cut the interest rates with 0.75% 8-days ahead the expecting decision. The fast action of the Federal Reserve was accepted as signal by the investors for coming recession in the world biggest economy. Very bad signal that stop the winning dollar trend and turn into new dollar weakness with lose of more than 220 pips today. This action is very bad signal that will set many new questions how close is US economy to recession.
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