The Dollar Index Is a Catalyst for Future Inflation

If the dollar breaks much more, I think the dollar index is going to make a sharp move from 100 to 90. There's some support down at 90 on the dollar index. And so I would expect that if the dollar does break about 10%, it will stop falling at least for a while at 90. A weaker dollar is going to push up all of our import prices. Everything we import is going to cost more. So these record trade deficits are going to go to new highs because the weak dollar isgoing to make everything we import more expensive.