ECB’s Tough Inflation Stance Will Keep Euro High
Aug 7th, 2008 | By Chris Gaffney | Category: Featured, Financial NewsOn Tuesday, dollar bulls were hoping the Federal Reserve would take a hawkish stance on inflation and signal that an interest rates hike.
That didn’t happen. Instead, the Fed issued a fairly neutral statement. It said “downside risks to growth remain” - dropping a reference in June’s statement to “diminished” dangers - and price increases are of “significant concern.”
Chris Gaffney in The Daily Reckoning says the statement indicates the Fed realizes it will be forced to leave rates untouched. This leaves Mr. Market is to focus on the European Central Bank. Expect more inflation fighting from Jean-Claude Trichet and his pals…