Fed's Bernanke Sees Inflation Risks

Discussion in 'Forex' started by DrawDown, Jul 20, 2006.

  1. http://news.yahoo.com/s/nm/20060719...xEfx.kioXGyBhIF;_ylu=X3oDMTA0cDJlYmhvBHNlYwM-

    By Tim Ahmann Wed Jul 19, 6:04 PM ET

    WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke warned on Wednesday the U.S. economy still faced inflation risks but said cooler growth should curb price pressures over time. His comments boosted financial markets.

    More rate hikes on the way? Is this how Bernanke intends to deal with "inflation risks?"

    Higher oil prices have got to be badgering him.

    Unless other majors keep up, a higher differential interest-paying USD may attract buyers (to get into a superior interest-bearing instrument).

    This would send the exchange rate price of USD UP against other majors.

    Example USD/JPY and EUR/USD.


    116.81 (long @ 118.71)
    1.2640 (short @ 1.2534)
  2. So what does he see now?...Our thread author is no longer here but anyone?

    Michael B.