Profile image
By silveristhenew (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

Focus on Policy Mix Strengthen Dollar Bull Case

Saturday, November 12, 2016 18:39
% of readers think this story is Fact. Add your two cents.

B4INREMOTE-aHR0cHM6Ly8zLmJwLmJsb2dzcG90LmNvbS8tQmtuaGxDNERMZlEvV0NZcEtuelBWekkvQUFBQUFBQUFXUlkvZ3NSSEJKSjV2cHdWbDFWTzhVaEVqZlF4Nk04VWU5cVZ3Q0xjQi9zNDAwL2RvbGxhciUyQm1hbi5qcGc= / by Marc Chandler / Nov 12, 2016

Our bull case for the US dollar has been predicated on the divergence of monetary policy and the relative health of the financial system.  What is new, and investors are anticipating, is fiscal policy.

After several years of reducing the budget deficit, both Trump and Clinton promised fiscal stimulus. Trump offered more infrastructure spending and tax cuts than Clinton.  His economic team, though formal appointments have yet to be announced, suggests $1 trillion fiscal stimuli (~6% of GDP), which is larger than even Sanders advocated in the primaries.

At the same time, investors are more confident of a Fed hike next month. But more than that, the derivatives market is beginning to price in a more aggressive Fed.  A few days before the election, investors learned that average hourly earnings rose by 2.8% year-over-year.  This is the fastest in several years, and although one month a trend does not make, it is consistent with a tightening of the labor market, and rising core inflation pressures.


The post Focus on Policy Mix Strengthen Dollar Bull Case appeared first on Silver For The People.


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global


Top Alternative




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.