In all my years of writing about the stock market, I've never had to deal with a market that's been artificially held up by a quasi-public agency. By now it's obvious that on any hint of Fed tapering, the stock market has a heart attack. Thus, the question is -- how will the Fed ever have the courage to cut back on QE? The next question is -- how will the Fed get the US economy to reach the Fed's desired inflation level, which is around 2%? The answer is simple and direct: to reach 2% inflation, the Fed will probably have to increase QE above the current level of a trillion dollars per year. If or when this occurs, it should put terrific pressure on the dollar, which is already under pressure.
The level that I've been watching on the dollar index is 78, since at 78 we will revive ... Log in or subscribe to continue reading.
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