Steven Kamin on the Global Influence of Fed Policy and the U.S. Dollar
Macro Musings with David Beckworth
00:00
The Causality of Rising US Interest Rates
The rise in inflation that the US experience has led the Fed to tighten monetary policy, and that's helped push the dollar up. My informal sense is that if you look at the history of the last couple of decades of the Fed, Fed policy has been an important influence on the trajectory of the dollar. But thinking about it a little bit more, there have been some pronounced episodes where that's been a little bit less the case. And so the one I am thinking of is the substantial rise in the dollar in the late 1990s and early 2000s.
Transcript
Play full episode
