The Good, The Bad, and The Ugly of US Dollar Strength

The Good, The Bad, and The Ugly of US Dollar Strength Along with protracted supply chain disruptions, the war in Ukraine, and bad weather events, the strong US dollar is another source of inflation for many economies. The US dollar has strengthened steadily since January 2021, but the pace of appreciation accelerated as the Federal Reserve (Fed) hiked interest rates to combat inflation. Consequently, higher inflation is forcing central banks spanning the globe to engage in more aggressive monetary policy tightening to wrestle inflation to the ground. Hence, the risk of slower global growth and even another global recession rises with further US dollar appreciation. Learn the consequences for businesses of excessive US dollar strength. READ »