Economics
The Strong Dollar's Impact on U.S. Economy Will Outlast Cheap Oil's
The strong dollar poses some significant challenges for the economy.
A worker prepares to lift drills by pulley to the main floor of Endeavor Energy Resources LP's Big Dog Drilling Rig 22 in the Permian basin outside of Midland, Texas.
Photographer: Brittany Sowacke/BloombergThis article is for subscribers only.
Monetary policy makers are attempting to look beyond the transitory impacts from the recent weakness in oil prices and the strength of the dollar. While this is probably warranted in assessing the longer-term outlook for inflation, it may be less so for judging growth prospects.
A stronger dollar compounds the disinflationary impact from the drop in energy prices, but it also presents a significant deterrent for the economy in general and the export sector in particular.