Annual core inflation in the US stands at 1.7% in March. This level, just below 2%, is good news for the US dollar: ongoing stability and no danger of deflation nor high inflation. The lack of deflation danger which looms over the euro-zone and which Japan is fighting enables the Federal Reserve to continue focusing on its second mandate: employment. Some Fed officials feared that the Fed is not paying enough attention to low inflation. At least for now, these fears do not seem justified, nor does further monetary stimulus. Core inflation rose by 0.2% in March, stronger than 0.1% expected. The y/y was expected to stand at 1.6%, but it advanced to 1.7%. Headline Consumer Price Index (CPI) also exceeded estimates with a rise of 0.2% and the annual level bounced back from 1.1% to 1.5% in March, more than 1.4% predicted. With stable and solid inflation, the Fed can certainly continue withdrawing from the bond buying program. It is important to remember that after the third taper of QE, the central bank is still buying bonds at a rate of $55 billion per month. In addition, it has a huge balance sheet from previous operations and an interest rate running at near 0% for around 5 years. This is a lot of stimulus. With this amount of money in circulation, others feared that inflation could erupt and some even painted a picture of Zimbabwe style hyperinflation. Needless to say, there are no signs of inflation anywhere. With the amount of slack in the economy, it would probably take much more to make meaningful price rises. All in all, we can expect QE to fully end in October 2014. Regarding the first rate hike, this is still an open question. More: Â What Yellen’s New Office Means for Forex Traders Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Opinions share Read Next MT4 on a Mac Yohay Elam 8 years Annual core inflation in the US stands at 1.7% in March. This level, just below 2%, is good news for the US dollar: ongoing stability and no danger of deflation nor high inflation. The lack of deflation danger which looms over the euro-zone and which Japan is fighting enables the Federal Reserve to continue focusing on its second mandate: employment. Some Fed officials feared that the Fed is not paying enough attention to low inflation. At least for now, these fears do not seem justified, nor does further monetary stimulus. Core inflation rose by 0.2% in March, stronger than 0.1%… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.