I’ve long said the Fed really doesn’t give a rat’s arse about the dollar, and Locherlakota basically confirms the point. US employment is relatively little leveraged to the dollar, so they really don’t care about dollar weakness until it begins to impact inflation.
Much of the talk of the Fed driving the dollar down to ramp up exports is misplaced. It is a nice sub-plot but is far from the main rationale for policies like QE.
