Sharma: Fiscal Policy Latest Angle to Watch in Currencies

The video discusses the dynamics of currency markets, focusing on the euro and dollar, and the impact of central bank policies. It highlights the challenges faced by central banks in influencing currency values through monetary policy and the potential role of fiscal policy. The discussion also covers the implications of dollar movements on global markets and the US economy, emphasizing the importance of consumer spending and the Fed's cautious approach to interest rate hikes.

What is the expected trend for the euro-dollar exchange rate by the end of the year?

• It will remain stable at 1.10

• It will rise above 1.20

• It will fall to 1.05

• It will reach parity with the dollar

What is the main concern regarding the effectiveness of further quantitative easing?

• It may lead to hyperinflation

• It might not weaken currencies further

• It could cause a stock market crash

• It will increase unemployment

Which policy angle is being considered as a potential influence on currency movements?

• Monetary policy

• Immigration policy

• Fiscal policy

• Trade policy

What historical event is influencing the Fed's current reticence to act?

• The 2008 financial crisis

• The 1998 financial conditions

• The 1987 stock market crash

• The dot-com bubble

What is currently the main engine for U.S. economic growth?

• Export growth

• Corporate investment

• U.S. consumer spending

• Government spending