The dollar has fallen against both sterling and euro over the past 24 hours. Yesterday’s data releases offered no surprises, with home sales still falling.
Yesterday Larry Summers, treasury secretary under Bill Clinton, described President Biden’s stimulus package as “the least responsible macro-economic policy we’ve had in the last 40 years”. However, on Radio 4 this morning Professor Cecilia Rouse, a senior economic advisor to Biden, said that the stimulus package included vital infrastructure and investments in support for American families, and reiterated the view that inflation would be transitory.
She also reiterated that interest rate decisions were independent but that the rapid growth in American wages was healthy.
Today we’ll hear about future business optimism in the Markit services and manufacturing PMI, while tomorrow it’s GDP and jobs.
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