The US Federal Reserve is
ahead of other central banks in normalizing monetary conditions.
The dollar should be supported just by the fact the U.S. is
ahead of other central banks in normalizing interest rates.
Not exact matches
In
other words, traders rushed to sell the Australian dollar, the Korean won and
other currencies to get
ahead of inevitable countermeasures by the region's
other central banks.
While there have been fewer indications to date
of a sea change among
other central banks, sentiments appear to be on the rise that hawkish actions lie
ahead.
As we have witnessed since April 2009, the
central banks around the globe have created more credit (counterfeit «money») than in any
other period in history and now that inflation is starting to once again emerge, they are threatening to raise interest rates to get
ahead of the curve.
The
other problem I have with
central bank policies is that they are prioritising juicing (or attempting to juice) the economy in the short term, through the so - called wealth effect
of higher asset prices and borrowing,
ahead of maintaining long term financial system stability.