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The dollar fell against most major currencies on Tuesday after better-than-forecast growth data from China. Gold rebounded after dipping below $2,000 an ounce.
The central question facing the Fed is what to do with interest rates at a time when the current economic data shows continued strength and inflation well above the Fed’s target, but stresses in the banking system threaten to derail growth. Traders are pricing in a quarter-point hike in January, according to the CME tool.