Wednesday, December 2, 2020

The FX market message

 Powell and Yellen get that message, the downward pressure on the dollar comes  on news of a stimulus.

The central bank is not the tax collector of last resort. I bet that any talk of shifting that seigniorage tax back to Treasury strengthens the dollar, even a well structured inflation tax. Investors already see the productivity gains from a free a Swift system. They will accept a fair inflation tax in that trade.

No comments: