Energy Markets

The more initial impact of moving away from the dollar in energy markets is to squeeze the dollar higher. If you start shifting just small amounts of the global energy market, which the current prices, I don't know, two, two and a half trillion a year, it's real money. It's all a sequel in the short run really positive for the dollar paradoxically. China's got to be careful. They do this too fast and they kill their own currency. As long as that pain is private sector, I think the Fed's willing to endure it. Once that dollar strength impacts the treasury market, Powell doesn't want to be the first Fed share to oversee a failed treasury auction.