The Fed's next step is no "exit", but a "pause", portfolio manager Axel Merk tells Reuters
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'The market is finally realizing that the euro can thrive and interest rates can rise even with problems in peripheral countries,' said Axel Merk, president and chief investment officer of Merk Investments in Palo Alto, California.
Merk, who oversees $600 million in assets, said a move to $1.50 in coming months was likely, partly because the Fed is nowhere near ready to start tightening U.S. monetary policy.
Even if the Fed ends its $600 billion bond-buying program in June as planned, 'that isn't an exit from easy policy, it's a pause,' Merk said. 'The banking system is still awash in liquidity, and they're not mopping it up. [New York Federal Reserve President William] Dudley said there was no need to change anything.'..."