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.
2019-07-27 17:37:00 Saturday ET

Capital gravitates toward key profitable mutual funds until the marginal asset return equilibrates near the core stock market benchmark. As Stanford finance
2022-11-15 10:30:00 Tuesday ET

Stock market misvaluation and corporate investment payout The behavioral catering theory suggests that stock market misvaluation can have a first-order
2019-09-15 14:35:00 Sunday ET

U.S. Treasury officially designates China a key currency manipulator in the broader context of Sino-American trade dispute resolution. The U.S. Treasury cla
2017-03-27 06:33:00 Monday ET

Goldman Sachs chief economist Jan Hatzius says the Federal Reserve's QE exit strategy makes sense ahead of Fed Chair Janet Yellen's stepdown in 2018
2019-06-01 10:33:00 Saturday ET

Top tech firms such as Google, Intel, and Qualcomm suspend Android services to HuaWei as the Trump administration blacklists the Chinese company. HuaWei can
2018-12-07 11:35:00 Friday ET

Fed Chair Jerome Powell hints slower interest rate increases because the current rate is just below the neutral threshold. NYSE and NASDAQ share prices rebo