American Dollar Eases

The dollar has eased a bit among fears that the economy’s unstable condition will last longer and exert more pressure on the public before stabling. If this is the case, it will limit the Federal Reserve’s ability to raise the interest rates by the end of 2008 as originally predicted. Merrill Lynch reminded investors that the credit squeeze was not over yet and that the Lehman Brothers Holdings Inc. could very well post a loss and take an additional $2.5 billion write-down on home loans. Already two banks in the United States were seized by regulators.

However, there are some pundits that see the economic growth in the United States picking up steam and speed. Comments have been made that indicate the credit crunch’s deterioration is more of a reality that the increased inflation, both of which are affecting the other and making the American economy more unstable than it should be.