Dollar slides as global markets calm and fiscal policy anxiety eases

From Yahoo Finance: 2025-05-23 06:33:00

Global markets saw some calm return after a week of fiscal policy anxiety, but the dollar continued to slide. U.S. Senate Republicans plan substantial changes to Trump’s tax and spending bill. Germany’s economy grew faster in Q1 due to export frontloading. Japan moves rice from stockpiles to shelves to lower prices. Yields on long-term bonds rise in U.S., Japan, and Britain. Oil prices drop for fourth day, global investors feel uncertainty.

Trump’s fiscal package passes the House by one vote, heads to Senate for changes. U.S. debt could rise by $4 trillion over a decade. Interest payments take up more government spending than military. Fed Governor Waller hints at rate cuts if tariff issues are resolved. Supreme Court ruling raises bar for firing Fed Chair. May business surveys positive, jobless claims stable. Dollar weakens as sterling hits 3-year high against greenback.

Germany’s economy grows faster than expected in Q1, U.S. contracts slightly. U.S. and global economies may endure tariff war, but lasting impacts of other policies will be significant. AI concentration in Big Tech poses challenges. IMF criticized for not demanding redress in global trade imbalances. Rising global imbalances lead to brewing trade war. Bonded warehouses in U.S. see rush to convert facilities to avoid tariffs.

German economy grows faster than estimated in Q1 due to export frontloading. U.S. sees slight contraction in the same period. U.S. and global economies may endure tariff war, but lasting impacts of other policies will be significant. IMF criticized for not demanding redress in global trade imbalances. Rising global imbalances lead to brewing trade war. Bonded warehouses in U.S. see rush to convert facilities to avoid tariffs.



Read more at Yahoo Finance: Morning Bid: Dollar keeps tumbling