The dollar fell today as the FOMC wraps up its two-day meeting to discuss the state of the US economy. It is widely expected that the Fed will hold the line on interest rates while committing to further stimulus spending.
“It’s too risky for the Federal Reserve to play around raising interest rates before the economic recovery takes hold and becomes independent of stimulus measures,” said Tim Brunne, a credit strategist with UniCredit SpA in Munich. “We don’t expect the Fed to start raising rates until the fourth quarter of 2010 at the earliest.”
Bloomberg