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A reiteration of strong dollar policy is just noise if used without concurrent actions. We all know why the fed can not act without serious consequences to employment. The forthcoming 25pb EMU hike means more pressure on international investors and dollar holders and highlights the US limitations. Why the reference to the Phillips curve? It has no application in this policy setting. The damage to employment was done as the energy prices rose over the last 6-12 months. That is hitting now, and a rate cut is the traditional prescription. Too late the soup us ruined.
Jul 02 12:05 pm
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All Comments by whidbey »Risk to Investors as Global Inflation Hinders the Fed [View article]