Economics
Dollar Rally Adds to Uncertainty as Fed Eyes 2017 Rate Hikes
- Greenback’s rise caused by anticipation of fiscal boost
- Appreciation will harm economy if Trump can’t deliver
Neuberger's Aka: Dollar Could Rise Another 4%-5% in 2017
This article is for subscribers only.
The dollar’s appreciation may represent the U.S. economy’s biggest speed bump in 2017, and that could be good or bad, depending on whether President-elect Donald Trump follows through on measures aimed at accelerating growth.
The Bloomberg Dollar Spot Index, which tracks the greenback against 10 global currencies, has gained 6.7 percent since the Nov. 8 election, largely on expectations for lower taxes, higher government spending and looser regulations under Trump. All these could goose growth and pose questions for the Federal Reserve.