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Cool Video: Fox Biz TV Broad Economic Discussion

I joined Charles Payne on Fox Business TV for a broad economic discussion today.  Payne, like many, are concerned that the Fed continues to tighten and worries this is going to end the business cycle. He also argued that the strong dollar was a significant threat of US multinational earnings.

Charles Payne on Fox Business TV

In this roughly 6.5 minute clip of the entire discussion (here), I suggest that the best thing for the large US multinational companies, who have accounting, tax, and business incentives to hedge currency risk, is not a weaker dollar but stronger world growth.  
The Fed’s rate hikes, I think, do help underpin the dollar.  However, given the strength of the US economy and the fact that real short-term interest rates, including the Fed funds and two-year note yield, is still negative (i.e., below the headline inflation rate), it is hard to say policy is tight.  I suggested that nearly anyone else who is qualified to be Fed chair, including the past chairs (I somehow and inexplicably drop Bernanke from the list in a lapse on my part) would be doing that same thing.

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Marc Chandler
He has been covering the global capital markets in one fashion or another for more than 30 years, working at economic consulting firms and global investment banks. After 14 years as the global head of currency strategy for Brown Brothers Harriman, Chandler joined Bannockburn Global Forex, as a managing partner and chief markets strategist as of October 1, 2018.
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