"Federal Reserve officials want to tie an interest-rate rise to U.S. economic progress, but the minutes of their last policy meeting show they are struggling with how to come to grips with the dual threats of a stronger dollar and a global slowdown."
"'The Fed is becoming increasingly focused on the potential impact of the stronger dollar on the domestic economy at a time when the global growth momentum is beginning to slow, and the uncertainties this is adding to the economic outlook,' said Millan Mulraine, deputy head of research and strategy at TD Securities."
". . . . strengthening dollar could hurt the economy. . . ."
"The Fed acknowledged the market seems behind in this regard and suggested it could complicate matters when the time comes to raise rates."
- Reuters
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Talk of "economic progress" and "stronger dollar". I found a similar mindset in South Korea. To me, the "strengthening of the dollar" shows that the nations' central banks aiming to protect their own domestic economies are also inflating their money supply. Hence, the race to the bottom is entering another level. I read in this a signal that in the US more stimulus package is coming if not in few months, perhaps early next year. The market is the guilty party here. I just wonder what market does Reuters refer to?
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