Roubini: Dollar joins the currency wars

Nouriel Roubini on how the challenges the Fed may be faced with a rising USD “Until recently, US policymakers were not overly concerned about the dollar’s strength, because America’s growth prospects were stronger than in Europe and Japan. Indeed, at the beginning of the year, there was hope that US domestic demand would be strong enough this year to support GDP growth of close to 3%, despite the stronger dollar. Lower oil prices and job creation, it was thought, would boost disposable income and consumption. Capital spending (outside the energy sector) and residential investment would strengthen as growth accelerated. But things look different today, and US officials’ exchange-rate jitters are becoming increasingly pronounced. Read more at (VIEW LINK)