Dollar Rushes Higher, Treasury and the Fed Make Support Talk
Jul 23rd, 2008 | By Doug Casey | Category: Financial News, US Dollar & Forex TradingIn the currency market, the dollar moved sharply higher against the euro. Late Tuesday, the euro was trading at $1.5784 vs. $1.5923 on Monday.
Top officials were out jawboning to beat the band in an effort to talk up the buck yesterday.
Philadelphia Federal Reserve Bank President Charles Plosser said in a speech that the accommodative monetary policy is coming to an end and that rate hikes are on the way.
Plosser, a voting member of the Federal Open Market Committee this year, said that, “We will need to reverse course — the exact timing depends on how the economy evolves, but I anticipate the reversal will need to be started sooner rather than later.”
Treasury Secretary Paulson chipped in, saying that a strong dollar is “very important.”
He also said that, “I believe that the United States is on the right path to resolving market disruptions and building a stronger financial system,” but that “working through the current turmoil will take additional time,” and there will be more “bumps in the road.”
Paulson called on Congress to pass this week his proposal to back stop Fannie Mae (FNM) and Freddie Mac (FRE). The two companies need a world-class regulator, he said, adding that Federal Reserve must have a role in setting their capital standards.
Source: Dollar Rushes Higher, Treasury and the Fed Make Support Talk
Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.