The image of Ben Franklin with a black eye on the banknote 100 USD
MOSCOW, Dec 3 — Natalia Dembinski. Recently, the U.S. currency fell sharply reacted on the statement by fed Chairman Jerome Powell that now the interest rate is slightly below the neutral range. Financiers are indifferent to such fluctuations, but be warned: by the end of 2019, the dollar will enter a downward trajectory, and for many years. And billionaire investor ray Dalio confident that the rate will fall by 30 percent because of the “triple deficit” that will eventually lead to the inevitable — the dollar will lose status as a global reserve currency.
With the end of 2017, the fed tightens monetary policy, consistently raising the stakes. The logic controller is simple: the crisis is long over, the U.S. economy is recovering, but because the incentive measures time to finish. This year alone, the fed raised the key rate three times. Such rate of appreciation of money has put many companies in a very difficult position: to take out new loans more expensive, and should be to pay off old debts. Trump has already harshly criticized the strategy of the regulator, saying that the fed “went crazy” and became the main threat to the us economy.
The danger is real: the real estate market has already reacted to the fed slowing, housing prices have exceeded the levels that preceded the 2008 crisis. Analysts do not exclude that in 2019, the regulator can take a break. But Powell still made it clear that the market should prepare for a smooth and gradual increase in the base rate. © REUTERS / Carlos Maggipinto USA Donald trump and the head of the fed Jerome Powell