The dollar has been weakening precipitously, with the dollar index declining nearly 10% over the past few months.
I’m curious to hear tomorrow how the Fed intends to address this.
I’m curious to hear tomorrow how the Fed intends to address this.
... which is still up 6% from its 5-year low (January 2018), up 24% from its 10-year low (April 2014), and down 6% yoy.
>I’m curious to hear tomorrow how the Fed intends to address this.
What is there for the Fed to address? A weaker dollar, in and of itself, benefits US exports and reduces the trade deficit.
That leaves few options if dollar continues to weaken and inflation becomes concerning.
Still, this isn't the stagflation of the 1970s. While there may be underlying problems, the main issue is that Covid shut down parts of the economy, which also meant shutting down parts of employment. The trick really isn't to avoid inflation. The trick is to make it back to approximately normal without killing too many businesses and bankrupting too many families (while also not killing too many people). If inflation happens as a result, but we get back to a healthy economy, then we can worry about inflation. For the next one or two years, I don't think that inflation is the issue to focus on.