Fed has not lowered rates simply because they are trying to protect the Dollar here. If/When Europe starts to lower the Fed may have some room to cut w/out trashing the value of the Dollar. If the Dollar starts to fall to new lows we'll get more capital flight both internally and from abroad. Also we'll get oil and other commodities stay stubbornly strong or gain even in the face of a global slowdown/recession.
I look for a coordinated easing effort from the world's CBs at some pt soon. That way they can flood the system w/liquidity (the only thing they know how to do) without trashing the Dollar alone.
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