US Dollar Fundamental View

Schiff Statement on Fed

With its announcement today that it will keep interest rates near zero at least until late 2014, the Federal Reserve has put another large crack into the foundations underlying the US dollar. Not surprisingly, precious metals and foreign currencies rallied strongly on the news - with gold up more than 2.6% and the dollar index down nearly half a percent in the wake of the announcement.

Jan 26, 2012 | Euro Pacific Capital

USD Slides Sharply as FOMC Extends Pledge to Hold ZIRP Through Late 2014

From FOMC Statement: "To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy.

By Nick Nasad | Jan 26, 2012 | FX Times

The Fed is Unwilling and Unable to Fight Inflation

Before the Great Recession began in December of 2007, the M2 money stock was $7.40 trillion and the monetary base stood at around $800 billion. Therefore, the ratio between M2 and the monetary base was about 9:1. But now, thanks to Bernanke and his comrades at the Federal Reserve, the monetary base now stands at $2.7 trillion.

By Michael Pento | Jan 25, 2012 | Michael Pento

Preview: FOMC – New Communication Tool at Center of Attentio

While not much changes is expected to the general language from the previous FOMC statement we will get the "historic" introduction of a new communication tool by the FOMC in which the forecast for interest rates of each member will be put forward as part of the quarterly FOMC figures. This should give a clearer understanding to the market of where each member sees interest rates headed.

By Nick Nasad | Jan 25, 2012 | FX Times