World Economy

Greenback Undermined

Greenback UnderminedGreenback Undermined

Research Team at Brown Brothers Harriman, a financial services firm, suggests that the weakness of the US economy and the caution by the Federal Reserve to raise rates again after the December lift-off has undermined the greenback, FXStreet reported. “Following the drawdown in February wholesale inventories reported on April 8, the Atlanta Fed GDPNOW tracker slashed its Q1 estimate to 0.1%, sending the doomsayers in the traditional media and blogosphere chattering with the “told you so” rants. In recent years, Q1 GDP has typically been exceptionally weak. Between 2010 through 2015, the US economy averaged 0.75% growth at an annualized rate in the first quarter. Growth in the remainder of the year averaged around 2.5%. Except in the first quarter of 2012, the US economic performance has been the worst of the calendar year. There have been various attempts to explain this pattern, but the key takeaway for investors is to get over it because the economy will.