One of Fed's Biggest Market Headaches Slowly Goes Away: Chart

The Federal Reserve is only one interest-rate increase into the policy cycle, yet investors are already questioning whether the central bank can tighten more without crippling economic growth and keeping inflation from reaching its 2 percent target. Policy makers can take comfort in the decline of their own dollar index, which measures the currency against 26 major trading partners. It fell in the past two months from a 13-year high, helping make American goods more competitive and raising import prices.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.