WSJ: Booming U.S. Economy Ripples World-Wide, Straining Supply Chains and Driving Up Prices
The force of the U.S. expansion is driving overseas companies to sink money into the American economy
Thought THIS ONE FROM WSJ this morning was topical, generic yet still offered an interesting perspective of the US and GLOBAL economic impact of (fiscal/monetary) stimmy …
“We threw a lot of support at [the economy] and what’s coming out now is really strong growth, really strong demand, high incomes and all that kind of thing,” said Federal Reserve Chairman Jerome Powell after the central bank’s recent meeting. “People will judge in 25 years whether we overdid it or not.”
… and its global econ impact …
“The strong post-pandemic recovery that was originally expected for 2022 still hasn’t materialized,” said Timo Wollmershäuser, head of forecasts at Germany’s Ifo think tank. The institute recently lowered its growth forecast for Germany in 2022 by 1.4 percentage points, to 3.7%, citing ongoing supply bottlenecks and a new wave of Covid-19.
The Fed’s assertiveness is pushing up the value of the U.S. dollar and putting pressure on emerging-market central banks to increase interest rates even before their own economic recoveries are assured or risk depreciating currencies and runaway inflation.
Global economies and supply chains becoming victims of their own success…