Donald Trump and the U.S. Federal Reserve are heading for a collision that will almost certainly result in a stronger dollar, two leading economists said.
"I see a likelihood for a major clash developing in the next year, year and half, between the Trump administration's desire to go for 3 to 4 percent growth and the growing attention of the Fed to emerging inflation in their own 2 percent mandate," Northwestern University's Robert J. Gordon told a conference in Paris Monday. Barry Eichengreen of the University of California Berkeley sees "double-digit" dollar appreciation as a possible consequence of Trump's fiscal stimulus, tax reform and protectionist trade policy.
The president-elect's economic goals came into the spotlight at a Bank of France-organized conference on "secular stagnation" — the theory that advanced economies are headed for a long period of sluggish growth and stagnant productivity. The theory stands in contrast to Trump's promise to jump-start U.S. economic growth with a mix of infrastructure spending, tax cuts and repatriating jobs.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
