According to one official estimate, the massive tax cuts in the United States planned by the Republicans will cost the country $3.8 trillion over the next ten years. However, the calculations of independent agencies suggest larger sums, Bloomberg reports.

15 May 2025

US tax cuts extension could significantly increase national debt — Bloomberg

Dollar weakness triggered an unusual spike in volatility of other currencies

A weakening dollar raises the cost of hedging trades in other currencies worldwide, disproving the theory that costs should fall when the US currency weakens.

15 May 2025

Dollar weakness triggered an unusual spike in volatility of other currencies

JPMorgan expert believes US is able to avoid recession

Due to recent clarifications in the global trade landscape, the United States is poised to avoid a recession in the coming months. Dubravko Lakos-Bujas, head of global markets strategy at JPMorgan Chase & Co., shared this perspective during an interview with Bloomberg Television.

15 May 2025

JPMorgan expert believes US is able to avoid recession

Founder of Point72 Asset Management sees 45% chance of US recession

Speaking at the Sohn conference in New York, the founder of hedge fund Point72 Asset Management Steve Cohen shared his outlook on the American economy. He expects a sharp slowdown in the country's GDP growth in the coming years. The risk of a recession he estimates at about 45%.

15 May 2025

Founder of Point72 Asset Management sees 45% chance of US recession

Fed Vice Chair expects US economy to slow and inflation to rise

US Federal Reserve (Fed) Vice Chair Philip Jefferson expects import tariffs and associated uncertainty to slow economic growth and boost inflation in the country this year. However, monetary policy is currently well positioned to respond.

15 May 2025

Fed Vice Chair expects US economy to slow and inflation to rise

US consumers curb spending amid tariff policies and economic uncertainty

US consumers are adapting their spending habits amid economic uncertainty and the Trump administration's trade policies, according to a KPMG study cited by CNBC. Americans are being forced to revise their financial plans, delaying major purchases and worrying about increased debt burden.

15 May 2025

US consumers curb spending amid tariff policies and economic uncertainty

The dollar is the monetary unit of the United States (US). It is also used as the official currency by some other countries (Ecuador, Zimbabwe, El Salvador). The dollar holds a leading position in the world economy.

At the moment, the dollar dominates the system of international settlements with almost 50% share (the euro ranks second with less than 25%). Meanwhile, the dollar's dominance is even more pronounced in the financial sector, on the foreign exchange market, and in the government reserves.

The US currency (USD) quotes, as well as those of its foreign counterparts, depend primarily on the economic and political situation in the issuing country. The US authorities, such as the Federal Reserve System (the Fed) and the Department of the Treasury, influence the dollar exchange rate by changing their monetary, fiscal, budget, and tax policies.

Moreover, the value of the dollar may be significantly affected by the latest news and the international situation. Global economic problems and rising geopolitical tensions have historically been favorable for the US currency, as investors consider it one of the major safe-haven assets, along with gold. In contrast, during periods of strong economic growth and a relatively calm global environment, the demand for the dollar tend to reduce.