(Reuters) - The dollar has recovered in May after weakening for the first four months of the year as investors have slashed their expectations of a cut in U.S. interest rates. The implied chance of the Fed cutting rates by 25 basis points by 2008 is now less than 50 percent, down from earlier in the year when traders priced in two cuts.
Some economists are even beginning to wonder if the Fed will eventually have to raise rates, joining the European Central Bank, the Bank of England and the Bank of Canada, which are all expected to tighten policy at least once more to contain inflation pressures.
Read more at Reuters.com Hot Stocks News
Some economists are even beginning to wonder if the Fed will eventually have to raise rates, joining the European Central Bank, the Bank of England and the Bank of Canada, which are all expected to tighten policy at least once more to contain inflation pressures.
Read more at Reuters.com Hot Stocks News
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