The United States should consider deliberately weakening its own currency to ease strains on the global economy, according to one of the world’s leading fund managers. The pound is 17 per cent down against the dollar this year, the euro 14 per cent off and the yen 20 per cent lower as the US Federal Reserve aggressively hikes interest rates to tackle inflation. The pound has been the latest to be steamrollered, while Japan’s central bank recently intervened to prop up its currency for the first time in 24 years. He said: ‘Inflation is one thing, but clearly avoiding the financial system breaking is more important for the Bank of England for the time being. ‘The question is now more for the Fed and the ECB – if and when something breaks – how soon will they step in?’

Source: Daily Mail October 03, 2022 23:27 UTC