The U.S. dollar grew stronger this year and it can possibly restrain imported inflation. According to Boston Fed research in 2015, a dollar rise usually does more to reduce exports because it makes them more expensive than it does to lower the inflation by making imports less expensive.
Charles Bobrinskoy is head of an investment group at Ariel Investments. He’s also its vice chairman. He said that everyone is focused on trade and interest rates. He added that not everybody is paying enough attention to inflation, unfortunately.
Questions from the American People:
- What do higher expenses and lower profits mean for the growth of American business? Will we see more competition as business becomes more expensive for large corporations? Or will higher expenses bar small businesses from entering the market?
- Will more American businesses benefit from higher import taxes on foreign taxes as more Americans buy domestically? Or will higher prices for American goods in foreign markets hurt U.S. businesses?
