Wall Street Breakfast Greenback takes it on the chin
Apr 21, 2025
The dollar index plunges to its lowest since 2022, sparking discussions on its causes, including political pressures. Amidst this decline, Jefferies expresses optimism for Lowe’s. An economist predicts a staggering 90% chance of a U.S. recession, raising eyebrows. Also, Chipotle is making international moves with plans to open in Mexico. These insights reveal potential impacts on trade and the economy.
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Dollar Hits Multi-Year Low
- The U.S. dollar index dropped to its lowest since February 2022 amid concerns over Fed independence.
- President Trump's criticism of Fed Chairman Powell and rate policy impacts Treasury yields and dollar value.
Fed Independence Is Crucial
- Economists agree on the importance of free trade and Fed independence for economic stability.
- Attempting political control over the Fed risks financial market disruption rather than rate cuts.
Consider Lowe's For Growth
- Investors should consider Lowe's strong positioning despite near-term tariff uncertainty.
- Management initiatives may drive margin expansion and EPS growth when home improvement recovers.