Future voting members of the Fed’s policy setting committee waved off concerns regarding a declining dollar on Thursday, Nov. 19, suggesting that unless the decline becomes volatile or otherwise erratic, concerns about an inflationary impulse are unwarranted.

In commentary that seems to suggest the dollar’s decline may be a counterbalance to a historically undervalued renminbi (RMB). Dallas Fed President Richard Fisher told Market News International (MNSI) that the declining dollar value was simply one factor out of many the Fed used as an analytical input for its policy setting model.

Fisher told reporters that “a gradually depreciating dollar” would not necessarily add an “enormous inflation impulse”, and that the Fed’s answer to concerns over a weaker dollar was to pay attention to the dollar’s activity. Fisher also mentioned that there are “trade-offs” to be made between the strength of the dollar and deliberately low interest rates existing over a protracted

There were some other very interesting presentations at the conference hosted by the Federal Reserve Bank of Boston last week. Fed Chair Ben Bernanke spoke on Financial Regulation and Supervision after the Crisis while Princeton Professor Alan Blinder's message was