Interest Rates Fall, and the Dollar Follows

By Staff Editor | July 3, 2024

Everyone wants the Fed to take action to get the economy back on track, but now it’s starting to look like measures taken to help one area can do damage in another, complicating matters further.

This week the Fed slashed interest rates, a move intended to stimulate growth in the local economy. But the move also makes dollar denominated investments less attractive to foreigners, driving their money out of the country and forcing the dollar down against most other currencies.

Times are stormy now, and we may not see interest and exchange rates stable again for some while.

Related posts:

  1. Home Prices | US Markets | Fixed-Rate Mortgage That Dream Home May Be in Your Reach So many families in the US have watched over the past decade as house valued drifted further and further out of reach. While some borrowed...
  2. What’s Next for the EUR/USD? What’s Next for the EUR/USD? For the past three years, Americans have watched in shock and horror as their currency fell increasingly far behind the Euro, an upstart currency that seemed destined to...
  3. Oil Prices Fall as Economy Falters US consumers may be celebrating the recent fall of gas prices, but a number of disturbing fundamentals lie behind this seemingly positive development . If we examine the underlying causes for the recent...
  4. Looking for a Tax Haven: Try Delaware, USA The American state of Delaware was ranked first as the most opaque tax haven by the Tax Justice Network....
  5. Green is the New Green One of the variables underlying the current economic crisis is of course the price of oil. From airlines to SUV owners, to those who heat their homes with oil, everyone is feeling the...

Comments are closed.

« | Home | »