Treasury Secretary Steven Mnuchin welcomes a weak U.S. dollar amid pervasive fears of an open trade war between America and China.

James Campbell

2018-01-15 07:35:00 Mon ET

Treasury Secretary Steven Mnuchin welcomes a weak U.S. dollar amid pervasive fears of an open trade war between America and China. At the World Economic Forum, Mnuchin now praises the steady greenback devaluation that helps promote competitive U.S. export prices. This praise adds noise to the status quo as Trump seeks to withdraw from the North American free trade agreement, the Paris climate change accord, and the Trans-Pacific Partnership. Canadian, French, and Indian prime ministers accuse the Trump administration of unfair protectionism that trade deficits beget tariffs, quotas, and even embargoes.

Trumpism prevails in the face of international reprehension when the weaker dollar reaches a 3-year trough and gold prices rise to the highest level in about 2 years. Throughout the Reagan, Clinton, Bush, and Obama administrations, we associate each sharp greenback depreciation with key fiscal stimulus, export expansion, and subsequent interest rate hike. In order to resolve the twin deficit problem (i.e. both fiscal deficit and trade deficit), the Federal Reserve needs to raise the interest rate further to attract capital flows from abroad.

It is important for the Trump team to attract foreign investors to buy Treasury bonds to finance the perennial U.S. fiscal debt and deficit. Key exchange rate stabilization remains a hot pursuit for both U.S. policymakers and regulators to serve in the best interests of American workers and investors.

 


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.

Blog+More

U.S. bank oligarchy has become bigger and more resistant to public regulation after the global financial crisis.

Laura Hermes

2020-02-19 14:35:00 Wednesday ET

U.S. bank oligarchy has become bigger and more resistant to public regulation after the global financial crisis.

The U.S. bank oligarchy has become bigger, more profitable, and more resistant to public regulation after the global financial crisis. Simon Johnson and

+See More

Donald Trump and Kim Jong Un meet, talk, and shake hands in the historic U.S.-North-Korean peace summit in Singapore.

Daphne Basel

2018-06-06 09:39:00 Wednesday ET

Donald Trump and Kim Jong Un meet, talk, and shake hands in the historic U.S.-North-Korean peace summit in Singapore.

Donald Trump and Kim Jong Un meet, talk, and shake hands in the historic peace summit between America and North Korea in Singapore. At the start of the bila

+See More

Paul Samuelson defines the mathematical evolution of price theory and then influences many economists in business cycle theory and macro asset management.

Joseph Corr

2023-05-14 12:31:00 Sunday ET

Paul Samuelson defines the mathematical evolution of price theory and then influences many economists in business cycle theory and macro asset management.

Paul Samuelson defines the mathematical evolution of economic price theory and thereby influences many economists in business cycle theory and macro asset m

+See More

World politics, economics, and new ideas from the Psychology of Money written by Morgan Housel

Daphne Basel

2023-10-19 08:26:00 Thursday ET

World politics, economics, and new ideas from the Psychology of Money written by Morgan Housel

World politics, economics, and new ideas from the Psychology of Money written by Morgan Housel We would like to provide both economic and non-economic th

+See More

JPMorgan Chase CEO Jamie Dimon views wealth inequality as a major economic problem in America.

Monica McNeil

2019-12-19 14:43:00 Thursday ET

JPMorgan Chase CEO Jamie Dimon views wealth inequality as a major economic problem in America.

JPMorgan Chase CEO Jamie Dimon views wealth inequality as a major economic problem in America. Dimon now warns that the rich Americans have been getting wea

+See More

Saudi Aramco aims to initiate its fresh IPO in December 2019.

Charlene Vos

2019-12-13 09:32:00 Friday ET

Saudi Aramco aims to initiate its fresh IPO in December 2019.

Saudi Aramco aims to initiate its fresh IPO in December 2019. Several investment banks indicate to the Saudi government that most investors may value the mi

+See More