Via Bloomie comes David Woo, head of global rates and foreign exchange strategy at Bank of America:
“I’ve never been this bullish the U.S. economy in 20 years I’ve been doing this,” the strategist said in an interview on Bloomberg Radio, citing the effects of the tax overhaul on corporate behavior. “That’s the fundamental story here, which is that this economy is growing gangbusters and the market remains in denial.”
Should trade tensions intensify, European and emerging market economies will bear the brunt of the damage, and those currencies will fall relative to the greenback, he argued. If not, “this economy is going to go crazy and I’m telling you the dollar is going to surge because we’re going to see a massive repricing of the federal funds rate,” said Woo.
