Previous post Next post

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.

Full story here
Marc Chandler
He is Global Head of Currency Strategy of Brown Brothers Harriman (BBH). He has been covering the global capital markets in one fashion or another for 25 years, working at economic consulting firms and global investment banks. He regularly appears on CNBC and has spoken for the Foreign Policy Association. In addition to being quoted in the financial press daily, Chandler has been published in the Financial Times, Foreign Affairs, and the Washington Post. BBH provides specialist services and innovative solutions to many Swiss asset managers that include a global custody network of close to 100 markets, accounting, administration, securities lending, foreign exchange, cash management and brokerage services. Feel free to contact the Zurich office of BBH
Previous post See more for 4) FX Trends Next post
Tags: ,,,,

Permanent link to this article:

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This site uses Akismet to reduce spam. Learn how your comment data is processed.