Must-read: Jared Bernstein: “The Fed’s Pause and the Dollar’s Retreat”

Must-Read: Jared Bernstein: The Fed’s Pause and the Dollar’s Retreat: “The linkage between the more dovish U.S. Fed and the recent decline in the dollar…

…is notable…. Last year, net exports subtracted 0.6 of a percentage point from real GDP growth and manufacturing job growth slowed sharply: factory jobs were up 208,000 in 2014 compared to 26,000 last year…. The value of the dollar moves roughly with the odds of a higher Fed funds rate. The decision not to raise at this week’s meeting and the somewhat dovish shift in their statement, which referenced global risks to the US outlook, contributed to a sharp decline in the dollar. In my view, that’s smart policy at work…