The Fed finally acts to support the dollar

This time the Fed follows the expectations and supports the dollar and U.S. economy with normal quarter percent interest rates cut. The Federal Reserve cut the key benchmark interest rates to 4.25% from 4.50% today to stimulate the housing sector and the mortgage crisis. At the same time Fed keep the high interest rates still higher than the ECB. In the coming 1-3 months will decide whether the Fed action is successive. If the U.S. economy continues to suffer the Fed is ready to cut the interest rates again. Fed action was adequate this time after not appropriate politic in the last couple of months said Peter Mill expert in The dollar will start to gain while on the other side ECB signal for interest rates couple of months with not real action. These speculations by ECB not help to the dollar and aim to push the dollar as low as possible against the euro add Peter Mill.

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