What’s Next For The Dollar?

The Federal Reserve’s Open Market Committee (FOMC) is sticking to its course for phasing out the additional purchases of Mortgage Backed Securities (MBS). Notably however, in its statement released January 27th, reference to an improving housing market was omitted after recent bad news about the sector. The Fed rarely puts much weight on a month’s worth of data, be they good or bad; few have ever accused the Fed of being “ahead of the curve”. Indeed, there was one dissenting vote, Kansas City Fed President Thomas Hoenig, who argued the Fed should no longer commit to “exceptionally low levels…