Dollar Dives as Fed 'Double Down' on Treasuries
The dollar is facing trouble after recent announcements by Federal Reserve Chairman Jerome Powell. In his latest statements, Powell said the Fed would 'double down' on buying 10- and 30-year Treasuries to keep yields on these bonds high.
This move has led other countries holding Treasuries and dollars to reduce their risk exposure to these assets, causing the dollar to decline. The BBDXY index ended last week at 1,190 and was down to 1,186 overnight, indicating a downward trend for the dollar.
The recent jobs report also showed that the Labor Department added 162,000 jobs in August, but closer inspection reveals that this number is inflated by 74,000 jobs created artificially by the Bureau of Labor Statistics. In reality, only around 40,000 real jobs were added in August.