Everything seemed to be going along so nicely in the markets. Cooler heads had finally prevailed, and the Federal Reserve seemed to be ‘on board’ with the reality of the situation. That is, it appeared the powers that be understood rampant inflation in the United States would be hard to come by with the rest of the world opting for or exploring negative interest rates in order to spur economic growth. In essence, even with rates as low as they are and have been in our country, rates are lower most everywhere else (developed economies), meaning the US dollar is attractive by comparison.
While our politicians might bloviate how a strong dollar is good for economic growth, you know, it sure hurts our exporters, in general, and multinational companies when it comes to translating their foreign earnings back into the reporting currency.…Read On…