USA - Economy US dollar decline? Even the loonie is rising against the U.S. dollar as the Fed faces currency threat: by Don Pittis

No one will be surprised if Federal Reserve chair Jerome Powell uses part of his news conference on Wednesday to scoff at the idea of the U.S. dollar losing its place as the world reserve currency.

But even as he scoffs, the comments this week by strategists at global finance giant Goldman Sachs that "real concerns around the longevity of the U.S. dollar as a reserve currency have started to emerge," will certainly be in the minds of everyone listening to the Fed's latest plans.
Predictions of the mighty U.S. dollar's fall from its place as the ultimate measure of value are nothing new.

"Gold bugs" — the slightly disrespectful term for people convinced the yellow metal is the only truly safe investment — roll out an attack on the U.S. dollar's safety every few years.

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Even the loonie is rising against the U.S. dollar as the Fed faces currency threat: Don Pittis | CBC News

U.S. recession chances now at 80% despite Fed emergency moves says Reuters Poll

The coronavirus crisis has almost certainly ended the longest U.S. expansion on record and pushed the economy into the start of a short slump, according to analysts polled by Reuters who gave a median 80% chance of recession this year.

The Federal Reserve in an emergency move on Sunday slashed interest rates back to near-zero and restarted its asset purchases program, and since then has added trillions of dollars of liquidity to keep markets functioning.

But that will not be enough to prevent a recession, even though economists for now appear to think the blow will be punishing but temporary, with most expecting at least a modest rebound in the second half of the year.

Read more at: U.S. recession chances now at 80% despite Fed emergency moves: Reuters poll - Reuters

USA,: Trumps pick on the Board of the Federal Reserve ows $ 75.000 in back taxes

Read more at:
https://www.nytimes.com/2019/03/27/us/politics/stephen-moore-taxes.html

Global Economy: Why EM currencies matter to every investor - by Alex Rosenberg

Currencies like the Turkish lira and the Brazilian real may not always be foremost on investors' minds.
But according to Scotiabank's chief FX strategist, Camilla Sutton, emerging market currencies are sending powerful signals about what the U.S. dollar will do next—and could convey a loud message to the Federal Reserve.

As the dollar has surged this year and oil has continued to crumble, emerging market currencies have felt the pain. The real has fallen 16 percent against the dollar year to date, dropping nearly a full percent on Tuesday alone—a huge move for a currency.

The lira has been another big decliner, retreating 1.2 percent against the dollar on Tuesday, for a 13 percent drop on the year. And the Mexican peso is at all-time lows against the greenback.

Obscure as these moves might sound, Sutton says that if they intensify, they could actually cause the Fed to delay rate rises.

Read more: Why EM currencies matter to every investor: FX pro

US economy lacks strength to sustain gains says Ben Bernanke

Federal Reserve Chairman Ben Bernanke says the US economy still lacks enough spending and investment to sustain its recent gains.

Bernanke says consumer demand remains weak relative to its level before the Great Recession. He notes that other contributors to economic growth - including borrowing and trade - have declined. 

Ben Bernanke said the slow recovery from the Great Recession and 2008 financial crisis illustrates how vulnerable the global economy is, while urging economic policymakers to learn from that lesson.

For more: US economy lacks strength to sustain gains: Ben Bernanke - The Economic Times

US Economy: Dollar Falls as Bernanke Unsure When Monetary Stimulus to Unwind

The dollar dropped to a 16-month low against the euro after Fed Chairman Ben S. Bernanke said in his first press conference after a policy decision that he's unsure when the central bank will unwind stimulus.

The yen fell against all of its major counterparts as investors sought higher-yielding assets and Standard & Poor's cut Japan's debt outlook to "negative." The greenback slid for a seventh day versus the euro as Bernanke said the central bank will likely continue reinvesting maturing debt after its $600 billion bond-buying program expires in June.

"His language does not provide enough to change the dollar's downtrend," said Jessica Hoversen, a New York-based analyst at the futures broker MF Global Holdings Ltd. "The Fed believes that accommodative policy is still necessary, long-run inflation expectations remain stable and growth fragile."

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