Bad Credit Mortgage Refinance ®
		Home Page Mortgage News You Can Use Dollar to hit US import prices eventually-Greenspan Wed February 11, 2004 11:07 AM ET WASHINGTON, Feb 11 (Reuters) - Federal Reserve Chairman Alan Greenspan said on Wednesday the dollar's steep slide had not yet fed into higher U.S. inflation via import prices, but he warned this could not continue indefinitely. In his semi-annual address to Congress, Greenspan said low inflation had been "especially notable" given the dollar's 13 percent slide against a broad basket of currencies from early 2002. He argued import prices might have been shielded from this fall because foreign exporters may have swallowed currency-related costs to protect their market share, with profit margins helped by short-term currency hedging. This, however, cannot go on forever, the central bank chief said. "Although hedging may delay the adjustment, it cannot eliminate the consequences of exchange rate change," he said, but added that this would aid the trade balance. "Accordingly, the currency depreciation we have experienced of late should eventually help contain our current account deficit as foreign producers export less to the United States. On the other side of the ledger, the current account should improve as U.S. firms find the export market more receptive," he said.   Back to Original Article: Mortgage News You Can Use   Continue with: U.S. Treasuries Economic growth fuels stronger world oil demand-IEA Dollar Drops on Greenspan Remarks
		Bad Credit Mortgage Refinance