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.
2017-07-19 11:35:00 Wednesday ET

This brief article encapsulates the timeless wisdom of Warren Buffett's famous quotes on fundamental stock investment, fear and greed, patience, risk co
2018-08-05 12:34:00 Sunday ET

JPMorgan Chase CEO Jamie Dimon sees great potential for 10-year government bond yields to rise to 5% in contrast to the current 3% 10-year Treasury bond yie
2018-02-19 08:39:00 Monday ET

Snap cannot keep up with the Kardashians because its stock loses market value 7% or $1 billion after Kylie Jenner tweets about her decision to leave Snapcha
2018-03-27 07:33:00 Tuesday ET

CNBC's business anchorwoman Becky Quick interviews Nobel Laureate Joseph Stiglitz on the current trade war between America and China. As America imposes
2020-05-21 11:30:00 Thursday ET

Most blue-ocean strategists shift fundamental focus from current competitors to alternative non-customers with new market space. W. Chan Kim and Renee Ma
2017-08-31 09:36:00 Thursday ET

The Trump administration has initiated a new investigation into China's abuse of American intellectual property under Section 301 of the Trade Act of 19