Why is the U.S. dollar so strong? This seems counterintuitive given the very high inflation rate we are currently experiencing. Just saw Mohamed El-Erian on FOX Business and he offered three explanations:
1) The Fed is front loading interest rate increases because they are late to the inflation fighting party
2) Although the American economy is slowing, it is still better than the rest of the developed world
3) The dollar is still viewed as a safe haven.
Afterward: And a strong dollar has the effect of exporting our very high inflation to the rest of the world …
STAND UP FOR A STRONG $!
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