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How Trump creates another ’run-hot’ influence on the economy
['Sam Boughedda', 'Thu January At Pm Gmt', 'Min Read']
Yahoo Finance - Business Finance, Stock Market, Quotes, News
Investing.com -- According to the latest Sevens Report, President Donald Trump’s endorsement, intentional or not, of a weaker U.S. dollar is adding yet another force pushing the economy into what the firm describes as a “run-hot” environment.
In its latest note, Sevens said Trump “sent the dollar to four-plus-year lows” after dismissing its recent slide, effectively signaling support for further weakness in the currency.
The downside, the firm warned, is that “ever-increasing amounts of money chase finite goods and services,” keeping prices elevated even as growth holds firm.
A weaker dollar amplifies that dynamic in three major ways.
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