Ill-advised move. The U.S. Dollar is still over-valued, yet raising interest rates further props it up (and that makes foreign imports cheaper).
Ill-advised move. The U.S. Dollar is still over-valued, yet raising interest rates further props it up (and that makes foreign imports cheaper).
I don't see any good reason for raising rates other than Greenspan needs a reason for being. He admitted (after the fact) it was raising rates w/o real inflation that started the recession of 2001.
How do you figure the dollar is overvalued? The last two weak dollar policy periods ended in disaster. The first was the Carter administration and the other was the second term of the Reagan administration, which ended in the crash of 1987.