NEW YORK - Federal rescue plans are all the rage in Washington right now, for what seems to be everything but the dollar. The U.S. currency is not going to get a bailout, even though its steep decline is feeding inflation and straining the economy.
Federal Reserve Chairman Ben Bernanke and other officials have assured us that the government is on the case of the plunging dollar.
Talk is cheap - they won't likely do anything about it.
That's because the Bush administration since taking office nearly eight years ago has not supported any U.S.-led intervention in foreign-exchange markets despite the greenback's steep decline. That action would involve buying the ailing currency to boost its value.
"It would take a rare set of circumstances to get the U.S. right now to intervene," said David Gilmore, a managing partner in Foreign Exchange Analytics in Essex, Conn.
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