There is some confrontation going on in the Fed. The thing is that the members of the FOMC cannot find a common language over certain issues on the agenda, including short-term interest rate changes. The list of other important issues that failed to be resolved include inflation, interest rate forecast and the current state of the US housing market.
It should be noted that most members of the FOMC are willing to see the Fed raising interest rates in the near future. Still, such willingness puzzled the rest of the FOMC that stick to the opposite view.
At the same time, 2 FOMC members offered to suspend the tapering of QE3 due to some signs of weakness emerging in the US economy. The meeting minutes also say that the heads of the Federal Reserve banks failed to agree on interest rates as well. The thing is that it would be difficult to explain ultra low interest rates after the rate of unemployment declined below 6,5%. Still, the FOMC was united in terms of further tapering of QE3.
Meanwhile, the US Dollar continues its way down to further lows and the USD index is current trading around 80,185, Masterforex-V Academy reports. If the price keeps falling down, it may eventually find support around 79,95 and 79,52. Alternatively, if the price reverses, it may well encounter resistance around 81.44 and 81.58.
