File - In this Dec. 17, 2014 photo, Federal Reserve Chair Janet Yellen speaks with reporters at the Federal Reserve in Washington. The Federal Reserve releases minutes from its Jan 27-28 meeting on Wednesday, Feb. 18, 2015. (AP Photo/Cliff Owen)
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The minutes from the Federal Reserve's meeting last month have foreign-exchange traders wondering whether Janet Yellen has joined the currency wars.The dollar climbed to its strongest in more than a decade as a result, prompting billionaire Warren Buffett and Goldman Sachs Group Inc. President Gary Cohn to question whether the Fed can now increase rates without damaging the U.S. economy.The Bloomberg Dollar Spot Index, a gauge of performance against the euro, yen, pound and seven other major currencies, erased gains after the Fed released the account of its Jan. 27-28 meeting.The greenback has advanced at least 4 percent against each of its 16 major peers in the last 12 months. A trade-weighted index of the U.S. currency climbed to its highest since April 2009 last month. The currency's strength makes it "very tough" for the Fed to lift interest rates this year, Buffett, the chairman of Berkshire Hathaway Inc., said this month.Futures contracts show an 18 percent likelihood that the Fed will raise rates to 0.5 percent or higher at its June meeting, down from 23 percent a week ago.
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