Daily Archives: Jan 24, 2018 at 07:17 am EST

Is A Weaker Dollar A Plus For US Economic Growth?

Treasury Secretary Steven Mnuchin says that a softer dollar will juice US economic growth. Speaking at the World Economic Forum in Davos, Switzerland, he advises that “obviously a weaker dollar is good for us as it relates to trade and opportunities.” Does that mean that tracking the dollar’s value in foreign exchange markets offers insight into projecting US GDP in the near term? Alas, no. A preliminary look at the numbers suggests the relationship between a broad measure of the US dollar and GDP growth is mostly noise.
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Macro Briefing: 24 January 2018

Senate approves Powell as Fed chairman: Bloomberg
CIA Director says N. Korea may use nukes for “coercive” purposes: CNN
Montana implements net neutrality rules following FCC repeal: The Hill 
Economists expect global growth to reach 8-year high in 2018: Reuters
US Treasury Secretary says a weaker dollar benefits US economy: Bloomberg
Is positive sentiment at Davos meeting a contrarian indicator? Guggenheim
One-sixth of millennials have saved $100,000 or more: USA Today
Richmond Fed Mfg Index: growth slows to 3-mo low in Jan: Richmond Fed
Employment up in half of US states in 2017; no change in other half: Labor Dept