The US Dollar Crisis Showed &Nbsp; QE3 Was Strongly Supported By The Federal Reserve Senators.

The senators of the Federal Reserve include the chairman of the Federal Reserve, Bernanke (Ben Bernanke), the Federal Reserve vice chairman Yellen (Janet Yellen), the New York Fed chairman Dudley (William Dudley), and other members who have mastered the Federal Reserve's monetary policy.

The dovish position of chairman Bernanke has long been unnecessary to be repeated. After the announcement of Yellen and Dudley full of dovish speech within days, the market's expectations for QE3 once again surged.

Affected by this, the US dollar index is facing a sell-off again, and the risk currencies and commodity currencies are rising dramatically.

Thursday (April 12th) midday in New York, the dollar index continued the early downward trend, hitting the lowest 79.21 level in the week, this week.

Dudley and Yellen consolidate the camp of the old pigeon faction.

New York Fed chairman Dudley said on Thursday that despite the encouraging economic data in recent months, labor market performance in March was disappointing, indicating that it is too early to conclude that the economy is out of the woods.

He said the Federal Reserve is gathering more data to decide that last month's non farm report is only a climate related retreat, or that the economic recovery is losing momentum again.

The chairman said, "

Dudley said the Fed needs to consider the cost and effectiveness of the third round of quantitative easing (QE3).

If the economic outlook deteriorates, the benefits of the third round of quantitative easing will increase.

Coincidentally, the Federal Reserve vice chairman Yellen (Janet Yellen) said late Wednesday evening that the Federal Reserve's ultra loose monetary policy was appropriate because of the high unemployment rate and the economic resistance.

She said that the Fed's policy guidelines will adjust accordingly to the performance of the economy and defend the Fed's expectation of maintaining near zero interest rates by at least 2014.

Yellen said that the housing market, fiscal policy and weak overseas economic growth impacted the recovery of the US economy.

Although the job market has shown signs of improvement, the economy is far from the level of full employment, and the rate of economic growth may only reduce the unemployment rate gradually.

If job recovery is too slow, structural unemployment may increase, which will provide justification for easing policy.

Dudley and Yellen are the more influential members of the Fed. Their position has permanent voting power on the FOMC, which opens the door for more measures by the Fed.

Adam Cole, head of foreign exchange strategy at Royal Bank of Canada, said that the Fed officials' speech slightly pushed up the market's expectation of the Federal Reserve's introduction of QE3.

In some areas, though, the Fed chairman has always been right.

Philadelphia Fed chairman Proso (Charles Plosse) said on Thursday that the current economic situation does not need further monetary policy support.

He pointed out that the March employment report did not have a substantial impact on its economic outlook.

Minneapolis Fed chairman Kocherlakota (Narayana Kocherlakota) said, "a good economic situation will enable the Federal Reserve to raise interest rates in early 2013 or 2012.

If inflation or unemployment rate is expected to rise sharply, it is suggested that policy easing should be increased. "

4Cast Inc senior economist Sean Incremona said, "although it will not be a simple data change to the overall economic outlook, but the United States in March non farm employment data, and last week's early jobless claims increase does show that the country's labor market has slowed down."