Seems like China and Brazil and Russia are jumping into the fire from the frying pan. With the strengthening of the yuan, wouldn’t that increase US inflation implying continued Fed tightening? The plot thickens.
Discussion
I like this question because I’m not of the answer.
Less global demand for dollars means the value of the dollar is weakening against the other currencies being used.
I think this means imports paid in dollars are more expensive, price inflation.
And the US imports a lot of stuff.
Fed might raise interests in an attempt to attract investment and create demand for the dollar.
The increased interest rates makes debt more expensive, raise the cost of doing business, downward pressure on markets.
Ultimately I think this lands back on printing to avoid a full economic breakdown.
🤙
The spiral down.