The shocking truth about Fed's interest rate policy and Dollar's value

It has long been argued that the strength or weakness of the U.S Dollar depends largely on the Interest rate cycle that the FED is operating on.

The theory being:

• A rate lowering cycle drives down interest cost to borrow the Dollar.

• The amount of Dollars in Circulation increases, Meaning a Weaker Currency value. On the flip side,

• A rate raising cycle drives up the interest cost to borrow the Dollar.

• The amount of Dollars in Circulation decreases, Meaning a stronger Currency value. This is the Basis of the Quantity theory of ... READ MORE