Donald Trump Is Tempted to Burst the US Dollar Bubble to Keep His Election Promises.
Jerome Powell and the Fed will be standing in his way!
I'm going to ask you to go back almost a year. Think back. At the beginning of 2024, the markets were well aware of the overvaluation of the US dollar, but they remained optimistic all the same. To say they were more than surprised by what happened in 2024 would be an understatement.
Overall, they were overwhelmed by two phenomena:
The Fed's status quo on rates until September 2024.
The greenback's renewed strength following Donald Trump's election to a second term in the White House.
As the year 2024 draws to a close, the US dollar is barely 1% away from its all-time high of October 2022:
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