Anna Helhoski
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Podcast Appearances
has instituted protectionist trade policies in the last few months, and as a result, our biggest trade partners have responded in kind. And restrictive trade policies tend to cause volatility in investment markets. Now, as I mentioned before, usually the dollar value increases during volatile times since it's considered a safe haven. But when the economy of the U.S.
itself is unstable, investors may opt to sell off U.S. assets like treasury bonds, and that weakens the dollar.
itself is unstable, investors may opt to sell off U.S. assets like treasury bonds, and that weakens the dollar.
itself is unstable, investors may opt to sell off U.S. assets like treasury bonds, and that weakens the dollar.
Yes, that's a big part of it. In stable economic periods, the dollar tends to have greater value. The health of the economy, as we know, is a mix of policy and economic data indicators. First is monetary policy, which is set by the Federal Reserve's Federal Open Markets Committee. The FOMC sets interest rates, which impact the dollar value.
Yes, that's a big part of it. In stable economic periods, the dollar tends to have greater value. The health of the economy, as we know, is a mix of policy and economic data indicators. First is monetary policy, which is set by the Federal Reserve's Federal Open Markets Committee. The FOMC sets interest rates, which impact the dollar value.
Yes, that's a big part of it. In stable economic periods, the dollar tends to have greater value. The health of the economy, as we know, is a mix of policy and economic data indicators. First is monetary policy, which is set by the Federal Reserve's Federal Open Markets Committee. The FOMC sets interest rates, which impact the dollar value.
Demand for the dollar goes up when interest rates are high, since high interest rates are more desirable to investors. but lower interest rates create less demand for the dollar, which means the value goes down. Now, other economic indicators like consumer spending and inflation influence market sentiment as well as consumer sentiment and economic forecasts.
Demand for the dollar goes up when interest rates are high, since high interest rates are more desirable to investors. but lower interest rates create less demand for the dollar, which means the value goes down. Now, other economic indicators like consumer spending and inflation influence market sentiment as well as consumer sentiment and economic forecasts.
Demand for the dollar goes up when interest rates are high, since high interest rates are more desirable to investors. but lower interest rates create less demand for the dollar, which means the value goes down. Now, other economic indicators like consumer spending and inflation influence market sentiment as well as consumer sentiment and economic forecasts.
All of the above will impact investor assessment and expectations. Positive sentiment leads to more investment in the U.S. economy, and that could increase the dollar value. Right now, the economy is technically doing okay, but there is a lot of fear and uncertainty about the direction it's heading.
All of the above will impact investor assessment and expectations. Positive sentiment leads to more investment in the U.S. economy, and that could increase the dollar value. Right now, the economy is technically doing okay, but there is a lot of fear and uncertainty about the direction it's heading.
All of the above will impact investor assessment and expectations. Positive sentiment leads to more investment in the U.S. economy, and that could increase the dollar value. Right now, the economy is technically doing okay, but there is a lot of fear and uncertainty about the direction it's heading.
What does that mean for people and what can they do? When the dollar weakens, its value does too, which means your dollar won't go as far as it once did. When purchasing power goes down, goods and services are more expensive for you, me, and everyone else in the U.S., So people are going to want to keep an eye on prices and potentially adjust their budgets, find ways to cut back on spending, etc.
What does that mean for people and what can they do? When the dollar weakens, its value does too, which means your dollar won't go as far as it once did. When purchasing power goes down, goods and services are more expensive for you, me, and everyone else in the U.S., So people are going to want to keep an eye on prices and potentially adjust their budgets, find ways to cut back on spending, etc.
What does that mean for people and what can they do? When the dollar weakens, its value does too, which means your dollar won't go as far as it once did. When purchasing power goes down, goods and services are more expensive for you, me, and everyone else in the U.S., So people are going to want to keep an eye on prices and potentially adjust their budgets, find ways to cut back on spending, etc.
It's the usual advice for dealing with inflation that consumers have had to do over the last few years. That said, domestic goods that don't rely on imports may not increase in price due to tariffs. It depends what supply chains that companies are part of. And one last thing, a weaker dollar can, typically, make U.S. goods cheaper for consumers in other countries and ease the trade deficit.
It's the usual advice for dealing with inflation that consumers have had to do over the last few years. That said, domestic goods that don't rely on imports may not increase in price due to tariffs. It depends what supply chains that companies are part of. And one last thing, a weaker dollar can, typically, make U.S. goods cheaper for consumers in other countries and ease the trade deficit.
It's the usual advice for dealing with inflation that consumers have had to do over the last few years. That said, domestic goods that don't rely on imports may not increase in price due to tariffs. It depends what supply chains that companies are part of. And one last thing, a weaker dollar can, typically, make U.S. goods cheaper for consumers in other countries and ease the trade deficit.
But with the current trade war, that's far from a sure thing.