If the Fed raises interest rates on Thursday, what will happen to the Dollar?

[Arbitrager_on_Acid]

Some scary shix.

-Adrian

[Arbitrager_on_Acid]

An interest rate hike could cause the dollar to gain value against other currencies. It could cause investors to feel more confident that the U.S. economy is growing and healthy and thus support a stock rally. [B] But it could just as easily scare investors who think the hike will take too big a bite out of corporate profits and thus cause a further decline in stocks. [/B] It could bring bond prices down.

I am very sceptical that a hike will be implemented without any meaningful increases in the CPI.

-Adrian

The scared investors are the news for today and they seem to be materializing on grounds that a delay in any hike is bad news. And this is the point: Hike or no hike, whatever the FED does can be interpreted good for stocks by some and bad for stocks by others. You never know.

-Adrian