The liquidity crunch driving the withdrawal of bond purchases by global central banks is creating the conditions of a classic policy quandary that is stoking international financial instability. The challenge in balancing growth, inflation and financial stability is now being exacerbated by ... READ MORE >
U.S. dollar
Japan intervenes in the currency market
With the yen in freefall, Japan on Thursday took the unusual step of intervening in currency markets to prop up the yen's value. For the first time in 24 years, the government began selling dollars to buy yen. The move came soon after the Bank of Japan held its policy rate at sub-zero levels, bucking ... READ MORE >
The return of king dollar: The greenback in an era of inflation
The return of inflation, interest rate differentials and a quickly changing geopolitical landscape are the primary catalysts behind the recent surge in the value of the American dollar. With the Federal Reserve set to boost the policy rate by at the very least 200 basis points over the remainder of ... READ MORE >
Why the U.S. dollar is strengthening
Policy by the central bank, interest rate differentials and a risk haven move into U.S. dollar-denominated assets are driving up the dollar against major trading currencies. This is a welcome development as the Federal Reserve continues to prepare investors for a significant increase in the federal ... READ MORE >
CHART OF THE DAY: Foreign investment in U.S. securities rebounds
It has been six months since the Biden administration and the new Congress took charge of foreign and domestic policies, and foreign investment flows suggest a vote of confidence in the economy and its institutions. The latest data from the Treasury International Capital (TIC) System indicates a 65% ... READ MORE >