Brookings
·
Published
November 21, 2024

The dollar and global markets after the US election

Leans Left
Commentary
·
2024 U.S. Elections
Share this article

Summary

The U.S. dollar has seen a moderate increase since Donald Trump's election victory, reflecting expectations of fiscal easing and stronger growth. A larger surge in dollar strength may occur if tariffs are imposed on China, potentially leading to significant global financial impacts, per commentary from Brookings.

The U.S. dollar has seen a moderate increase since Donald Trump's election victory, reflecting expectations of fiscal easing and stronger growth. A larger surge in dollar strength may occur if tariffs are imposed on China, potentially leading to significant global financial impacts, per commentary from Brookings.

The issue:  

The dollar's rise is influenced by investor expectations of U.S. fiscal policy changes, similar to trends observed after the 2016 election. A potential new phase of dollar strength could emerge with tariffs on China, risking severe depreciation in emerging markets and affecting commodity prices.

What they recommend:  

No recommendations provided in the commentary.

Go deeper:  

The report highlights a historical precedent from 2018, where U.S. tariffs led to a comparable fall of the yuan against the dollar, affecting global markets negatively. Tariffs could prompt China to buy more U.S. goods, potentially harming countries like Brazil and the EU, which heavily export to China. This dynamic could tighten global financial conditions, increasing risks for the U.S. economy.

This is a brief overview of a commentary from Brookings. For complete insights, we recommend reading the full commentary.

Related articles

All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
How federal layoffs set the stage for greater privatization and automation of the US government
Brookings
·
Nov 18, 2023

How federal layoffs set the stage for greater privatization and automation of the US government

Summary

The federal government's effort to downsize may lead to increased privatization and automation. This shift raises concerns about the accessibility and fairness of services for Americans reliant on government support, per commentary from Brookings.

Leans Left
Commentary
·
U.S. Government & Politics
Read summary
(1 min.)
-->
The Consequences of China’s New Rare Earths Export Restrictions
Center for Strategic and International Studies
·
Nov 18, 2023

The Consequences of China’s New Rare Earths Export Restrictions

Summary

New export restrictions imposed by China on rare earth elements have significant implications for U.S. sourcing of these critical materials, particularly for defense technologies. The restrictions require licenses for exports, potentially disrupting supply chains and impacting U.S. firms, especially in the defense sector, per commentary from Center for Strategic and International Studies.

Centrist
Article
·
U.S.-China Relations
Read summary
(1 min.)
-->
The presidential debate accomplished more for Harris than it did for Trump
Brookings
·
Nov 18, 2023

The presidential debate accomplished more for Harris than it did for Trump

Summary

President Trump’s latest tariff plan is under fire from a conservative think tank, which says the math behind it is both flawed and misleading.

  • Donald Trump focused on separating himself from his party's extreme policies and addressing key voter concerns like the economy and abortion.
Leans Left
Commentary
·
2024 U.S. Elections
Read summary
(1 min.)
-->
Trump’s Disqualification: A Primer
Cato Institute
·
Nov 18, 2023

Trump’s Disqualification: A Primer

Summary

Cato Institute expert Robert A. Levy writes that U.S. SupremeCourt Chief Justice Roberts will be "concerned about political repercussions" if Trump is disqualified from running.

Levy also argues that liberal justices will likely lean toward allowing voting citizens to decide if Trump should be President.

Libertarian
Commentary
·
2024 U.S. Elections
Read summary
(1 min.)
-->
What China’s Ban on Rare Earths Processing Technology Exports Means
Center for Strategic and International Studies
·
Nov 18, 2023

What China’s Ban on Rare Earths Processing Technology Exports Means

Summary
  • China's decision to ban the export of rare minerals affects U.S. national, economic, and rare earth security, given that rare earth elements are crucial in defense and technology sectors.
  • The U.S. has and should expedite its efforts to address its vulnerability in this area through funding decisions to enhance domestic rare earth processing capabilities.
Centrist
Commentary
·
U.S.-China Relations
Read summary
(1 min.)
-->
No results found.
Original Read Time
9 min
Organization
The Brookings Institution
Category
Israel-Gaza War
Political Ideology
Center Left

We make expert analysis of current events
simple and accessible for all.

Join us in elevating our public discourse.