I want to discuss the second to last paragraph or what the end game is going to be: Inflation or deflation?<p>Here is the paragraph:<p>&quot;...More quantitative easing in Europe while America tightens monetary policy is a recipe for a stronger dollar. If the greenback rises far enough, that will hurt export earnings in America, which will eventually feed through to weaker investment and softer GDP growth. The Fed may thus find that even a gradual increase in interest rates will have to be cut short. ...&quot;<p>AFAIK, The FED is so far removed from the consumer that banks, credit card companies, and PayDay Loan store-fronts determine interest rates rather than the FED. With that in mind what are the consequences if the FED does one or the other? What is next, asset inflation or asset deflation?<p>Thank you.