The dollar rose on Tuesday, touching a 2-1/2-month peak against the euro, suggesting the Federal Reserve could raise interest rates sooner than anticipated. What will Wednesday’s Fed decision mean for the markets? Larry Rosenthal, president of Financial Planning Services, shared his view on the dollar.
“We’re excited about the dollar strengthening—it’s showing a good healing process towards our economy,” Rosenthal told CNBC.
“We’ve stopped the freefall of assets and we’re just now beginning the next phase of economic recovery.”
Rosenthal said a year from now, he expects the dollar to be trading higher than its current position.
“The stimulus is being pulled out, people are paying the TARP back and the Fed is starting to raise interest rates to combat inflation,” he explained.
“We also need to see job creation—I’m optimistic that we’ll see positive numbers in the late spring and early summer, which is also another strong indication that the economy is healing itself and the Fed’s going to have to pull back the stimulus and raise interest rates, and that by itself is going to strengthen the dollar.”
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No immediate information was available for Rosenthal or his firm.