Jared Bernstein: [Trump did a bunch of stuff to strengthen the dollar; now he’s upset about the strengthening dollar(https://www.washingtonpost.com/news/posteverything/wp/2018/07/20/trump-did-a-bunch-of-stuff-to-strengthen-the-dollar-nows-hes-upset-about-the-strengthening-dollar/?noredirect=on&utmterm=.576fbc1e4803)_: "Trump is annoyed that the Fed is raising rates and that the stronger dollar is making our exports less competitive...
...You juice the economy at full employment with a deficit-financed, 2 trillion tax cut, and the Fed’s naturally going to ramp up their concerns about overheating. At the same time, the extra fiscal impulse is leading to stronger U.S. growth, relative to that of our trading partners, and that, too, puts pressure on both the dollar and the trade deficit. Meanwhile, tariffs tend to reduce the circulation of dollars in foreign exchange markets, yet another pressuring factor of the value of the greenback...
#shouldread
