The Mighty Dollar

(1) Dollar matters. (2) Fed heads talking about the dollar. (3) Fischer says strong dollar’s impact on inflation is transitory. (4) Fischer says dollar is depressing economy, which is why liftoff was postponed. (5) Missing from the Fed’s analysis: Strong dollar cuts profits. (6) US exporters at a competitive disadvantage as slow global growth heightens competition. (7) Strong dollar depressing commodity prices and global growth, which boosts the dollar. (8) Time to cut earnings estimates again? Maybe early next year. (9) None-anddone in 2016 no matter what happens in December. (10) Educated guess: 20% dollar appreciation = 5075bps rate hike