Trump vs Yellen

From the WSJ:

trumpvyellen

Trump would like to talk the USD lower.

Just about every policy he has proposed will push the USD higher.

Yellen is worried about “nasty surprises” if the Fed doesn’t raise rates.

My money is on Trump’s actions having a greater effect than his words…

Damien Klassen is Chief Investment Officer at the MB Fund launching in April 2017. Register your interest now (if you haven’t already):

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Comments

  1. I would definitely what repatriating trillions in off shore cash augmenting government wage stimulus via infrastructure projects will do to domestic demand and inflation?

    People seem to forget that currency and rates are not the only means to inflation.

  2. Meanwhile it seems that Trump’s proposed Treasury Secretary conveniently forgot to disclose $100m of assets, some in the Cayman Islands, to the confirmation committee.

  3. I’m curious if you could unpack why his policies would send the dollar higher. From where I’m standing policies that blowout the deficit and add to that $20 trillion pile O’bomber left behind, could send it lower.

    • this – if nothing else, good content marketing / lead gen for more MB fund subs or website subs.

    • High deficit spending usually only becomes a negative for a country’s currency when markets grow concerned that those deficits will be funded through the creation of new money by the central bank. In the US the opposite will happen – inflationary policies, if Trump does indeed deliver them, will prompt further monetary tightening and an appreciating currency.

    • adelaide_economistMEMBER

      Indeed, as you would expect since both bask in the reflected glory of prestige real estate ownership where commoners are kept at bay by armed guards.

  4. Since America is the world largest tax haven and financial sector player…. a hit to the USD would be quite a spot of trouble for some – real – people….

    Disheveled…..think of England and Brexit down the road….