Federal Reserve Is Confused

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United States Dollar - Federal Reserve Note - Series 1995Federal Reserve Governor Ben Bernanke had come up with dazzling policy that Fed will curbing buy-back of US$ 85 billion monthly. But this had created stir in the market, as United States Dollar started to bounce back. In India it created a stir as India Rupee nose-dived and created panic in the economy. Gold and other commodities crashed to its lowest level. But that was provided a good proof that United States Economy is growing.

Now, It's just Vice-Versa. Federal Reserve had come-up with sticking with the stimulus package. Why this is happening? Why the American Government had come-up with cheap money policy. But this will bring in Inflation and also create lot of issues like commodity crisis too. This will make the price of Gold to rise. Gold will be once more touching the price of Rs. 32,000/Ounce. But will be for a specific time period of about 2 month period. United States Dollar will come down

CAT 2013; Yahoo News

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