They don't want to cut the rate because they are worried about inflation. It has been at the top end of their acceptable limits, and realistically they would like to raise rates a bit to keep inflation in check. But with the dollar soaring, they don't want to create additional upward pressure (which raising the interest rate would do).
It is a balancing act.
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"The problem with any ideology is that it gives the answer before you look at the evidence."
—Bill Clinton
"The greatest obstacle to discovery is not ignorance--it is the illusion of knowledge."
—Daniel J. Boorstin, historian, former Librarian of Congress
"But the Senator, while insisting he was not intoxicated, could not explain his nudity"
—WKRP in Cincinatti
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