Financial Times FT.com

Insight: Quantitative steps mustn’t end in dollar rout

By Mansoor Mohi-uddin

Published: January 12 2009 15:16 | Last updated: January 12 2009 15:16

The dollar has begun to weaken again after the Federal Reserve last month cut its interest rate target to zero and shifted more explicitly towards a policy of quantitative easing.

As the December Federal Open Market Committee meeting minutes show, America’s central bankers expect to keep interest rates super low for the foreseeable future while continuing to expand the Fed’s balance sheet.

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