2019-09-13 10:37:00 Fri ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
China allows its renminbi currency to slide below the key psychologically important threshold of 7-yuan per U.S. dollar. A currency dispute between the U.S. and China has brought the trade conflict between the G2 superpowers to new extremes. U.S. Treasury designates China a currency manipulator soon after the Chinese central bank lets renminbi slide to the symbolically important level of 7-yuan per U.S. dollar for the first time in 11 years. This strategic move represents another escalation as the Sino-U.S. trade relations continue to deteriorate in the meantime.
On the one hand, this recent renminbi depreciation renders Chinese export prices more competitive and so can contribute to better trade-driven economic prospects. On the other hand, the renminbi depreciation inevitably exacerbates the monetary severity of 25% tariffs on $250 billion Chinese imports. This renminbi depreciation serves as a flexible countermeasure to the 10% Trump tariff on all the other $300 billion Chinese imports, and most U.S. stock market indices decline substantially 3%-5% in response to the bilateral tense trifecta of tech, trade, and currency. U.S. Treasury Secretary Steven Mnuchin indicates that the Trump administration can engage with the IMF, WTO, and World Bank to deter unfair trade competition from China.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2023-02-14 09:31:00 Tuesday ET
Eric Posner and Glen Weyl propose radical reforms to resolve key market design problems for better democracy and globalization. Eric Posner and Glen Weyl
2023-02-03 08:27:00 Friday ET
Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2023. Our proprietary alpha investment model outperforms the ma
2017-01-03 03:26:00 Tuesday ET
President-Elect Donald Trump wants Apple and its tech peers to consider better and greater high-tech job creation in America. Apple has asked its primary
2018-11-23 09:39:00 Friday ET
Former White House chief economic advisor Gary Cohn points out that there is no instant cure for the Sino-U.S. trade dilemma. After the U.S. midterm electio
2017-06-21 05:36:00 Wednesday ET
In his latest Berkshire Hathaway annual letter to shareholders, Warren Buffett points out that many people misunderstand his stock investment method in seve
2019-06-07 04:02:05 Friday ET
The world seeks to reduce medicine prices and other health care costs to better regulate big pharma. Nowadays the Trump administration requires pharmaceutic