2018-08-13 12:39:00 Mon 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
White House chief economic adviser Larry Kudlow points out that the recent U.S. dollar strength shows a clear sign of investor confidence and optimism. Greenback appreciation reflects the fact that international capital continues to flow into the U.S. economy as the Federal Reserve accelerates its interest rate hike. Meanwhile, this dollar appreciation helps dampen commodity prices within healthy and reasonable bounds.
However, President Trump suggests in an earlier tweet that the strong dollar may put America at a competitive disadvantage. In fact, greenback strength can render U.S. export prices less competitive and so may exacerbate future trade deficits in the current account. In addition to these recent exchange rate gyrations, the Trump administration gradually reveals the precautionary motive behind the current trade war against China. This major trade dispute and its attendant measures shine light on the U.S. grand strategy that seeks to thwart China's economic rise as a global superpower.
It is plausible for the Trump administration to view China as an aggressive currency manipulator. As the Chinese renminbi continues to depreciate at a gradual pace, Chinese low-cost imports become more affordable to most American households. For these strategic reasons, the Trump administration needs to re-engage Chinese diplomats and economists in the next round of bilateral trade negotiations.
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.
2018-09-19 12:38:00 Wednesday ET

The Trump administration imposes 10% tariffs on $200 billion Chinese imports and expects to raise these tariffs to 25% additional duties toward the end of t
2018-11-19 09:38:00 Monday ET

The Trump administration mulls over antitrust actions against Amazon, Facebook, and Google. President Trump indicates that the $5 billion fine against Googl
2018-01-09 08:33:00 Tuesday ET

BlackRock CEO Larry Fink emphasizes his key conviction that public corporations should make a positive contribution to society apart from boosting the botto
2019-03-19 12:35:00 Tuesday ET

U.S. tech titans increasingly hire PhD economists to help solve business problems. These key tech titans include Facebook, Amazon, Microsoft, Google, Apple,
2017-03-15 08:46:00 Wednesday ET

The heuristic rule of *accumulative advantage* suggests that a small fraction of the population enjoys a large proportion of both capital and wealth creatio
2019-09-19 15:30:00 Thursday ET

U.S. yield curve inversion can be a sign but not a root cause of the next economic recession. Treasury yield curve inversion helps predict each of the U.S.