And whoever said that the Fed isn’t making any impact? In an announcement, Fed chief Ben Bernanke stated that the Fed must continue with its efforts to boost the economy up. However, Bernanke warned against the possibility of inflation from untempered Fed support.
The comment propped up the dollar from 14-month lows. The dollar rose up against major currencies like the Japanese Yen and the Euro. However, experts warned that this isn’t likely to last as the Fed announced that it will not be raising rates any time soon.
The jump in the value of the greenback has its effect in other investments. Gold went down to below $1,050 an ounce and oil also eased off to $71 for a barrel of crude.
The Fed already announced that the country is out of recession but the continuing unemployment and a dire housing climate poses real challenges for a recovery.
Source: CNN
