How A Strong Dollar Can Backfire On The U.S. Economy

In 2022, the U.S. dollar reached its highest level since the early 2000s, but the dollar index has been trending downward as of August 2024. A weaker dollar is not necessarily a bad thing for consumers. A strong dollar may lead to higher prices for American consumers and reduced demand for U.S. exports, which can result in layoffs in key industries. Managing the value of the dollar is a balancing act, which can present challenges for the U.S. president, the Federal Reserve and other policymakers.

Chapters:
0:00 Introduction
1:37 Why the value of the dollar matters
2:56 Why the dollar skyrocketed
6:03 How the president can impact the dollar

Produced by: Charlotte Morabito
Additional Reporting by: Jeff Cox, Gina Francolla
Additional Camera by: Juhohn Lee, Emily Rabbideau
Edited by: Nora Rapapport
Animation: Christina Locopo
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images, Reuters

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How A Strong Dollar Can Backfire On The U.S. Economy

[Mathew-zsnz]

A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater thus worried about my savings around $200k

[fire]

Here's a summary of the video:

A strong dollar is good for imports because Americans can buy more stuff from foreign countries, but it's bad for exports because American made products are more expensive to people in foreign countries.

And now you can use your time to watch a video that doesn't take 10 minutes to explain one sentence.

[CameronFussner]

Looking at the US Bureau of Statistics, under the Consumer Price Index, one can notice that in the last quarter of this year, stocks are not really doing well, especially energy stocks as they seem to be below the zero point. However, I don't know if stocks will quickly rebound as I have no clue the direction of the market. Can I get an advice on any other stocks that I can acquire to diversify my reserve of $300k across multiple markets while creating a comprehensive portfolio.

[JuneTalley]

This is my fifth year after retirement. I’ve been following the 4% rule thing I saw on a YouTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get worried.

[roddywoods]

Crash fatigue is showing with most people. Most are so tired of hearing about the worse even though its true. We are being boiled slowly in the pot! I want to diversify my $80k portfolio.

[ThompsonWhite-h]

The economy is in such a mess, whether you vote blue or red, they all seem like the same bad government. It's really sad to witness the many struggles our economy is going through right now, with uncertainties, housing problems, bad weather, foreclosures, global changes, and the aftermath of the pandemic all adding to the instability. The increasing inflation, sluggish growth, and trade disruptions urgently need attention from all sectors to restore stability and encourage growth. How do you think we can effectively tackle these issues?

[OliverLiam-pxvx]

It's really sad to witness the many struggles our economy is going through right now, with uncertainties, housing problems, bad weather, foreclosures, global changes, and the aftermath of the pandemic all adding to the instability. The increasing inflation, sluggish growth, and trade disruptions urgently need attention from all sectors to restore stability and encourage growth. How do you think we can effectively tackle these issues?

[Bloated_Tony_Danza]

Up Next: How Owning Nothing Can Make Americans Happy

[felixfontaeus]

All I’m seeing is a bunch of rich powerful old people telling young adults that we are wrong because we are struggling in this fantastic economy.

[theresabennett]

Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!

[ThaexakaMavro]

Canadian here, i miss the days when the Canadian dollar was at parity we could buy stuff straight from the us without the stupid markup in the Canadian market

[MrMountain]

CNBC: We should print more money. We like cheap money.

[WilliamsRichardz]

We work for years to earn $1million on our retirement, while some people put thousands of dollars in some meme coins and they become millionaires.

[Unknown_someone]

Next video: US has a weak dollar and high debt this will benefit the economy

[CausticLemons]

This comment section is filled with bots. They're literally posting the same comments over and over.

[ra]

I'm astonished by how they try to sell you the idea that a weak dollar is better for us americans, there is literally almost no benefit to having a weaker currency other than "it makes our exports more competitive", however what good is it if everything else is going to cost more since we are a net import country, literally everything will cost more with a weaker dollar. Its quite normal to be a net import country especially in a developed economy like the U.S

[uxjkdkn]

Next video: How living below the poverty line is good for you.

[krishnendunayek]

No matter whether $ is strong or weak Debt Reduction should be America's First Priority.

[ceczis]

the volume of propaganda coming from this "news" channel is astounding

[peterponcedeleon]

A strong dollar makes us Americans richer while a weaker dollar makes us more poor.