Smoke and mirrors.
The Fed is inflating the economy as we speak. They stopped publishing M3 for a reason. While the raised rates to 5.25%, money supply grew at a seasonally adjusted annual rate of 8.7% in the three months from November 2005 to February 2006.
So on one hand they say they are fighting price inflation but in the background they are creating money inflation. I suspect the dollar is reacting to the growth in M3, not the Feds public interest rate decisions.
All the more reason to educate Americans that "MONEY IS TOO IMPORTANT" to Trust with Central Bankers!
http://www.financialsense.com/fsu/editorials/dorsch/2006/1212.html
How much is M2 growing?
The Fed recently began publishing M3 again...
How much has it grown since February?