Reflation Trade Is Overdone

In recent weeks, the dollar has been the centerpiece of speculation surrounding the outlook for global economies, rising protectionist threats and the resurgence of global asset prices. And it all derives from Fed policy. Bernanke’s speech yesterday and the latest statement by the FOMC clearly confirm that the Fed is DEFINITELY prepared to roll out another wave of its “quantitative easing” program — expanding the money supply with the hope of stimulating demand … igniting inflationary pressures … and ultimately creating incentives for employers to hire and invest, and for consumers to borrow and spend. This perceived guarantee of more QE has served as a… . . . → Full Story: Reflation Trade Is Overdone