In light of ongoing improvements in the functioning of financial markets, the Committee and the Board of Governors anticipate that most of the Federal Reserve’s special liquidity facilities will expire on February 1, 2010.
Very important shift in the Fed Statement yesterday as there was a whole new paragraph at the end about the removal of all the “special liquidity facilities”. This is the start of an exit strategy.
The dollar is rallying powerfully, up 2 cents versus the Euro today. This is driving everything.