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Goldman's Cohn Slams Fed's Fisher: A Soaring Dollar Is Not Positive For US Jobs, Companies

Who knows what to believe? Aside, that is, from the fact that the world appears to believe that it's better to have a weaker currency than stronger currency.. apart, that is, from Larry Kudlow and The Fed's Richard Fisher...

 

As Reuters reports,

Sharp gains in the U.S. dollar are good for the U.S. labor market, a top Federal Reserve official said on Friday, downplaying a crescendo of complaints from top executives over the dent to their profits.

 

"CEOs that have international operations complain about it," Dallas Fed President Richard Fisher told Reuters in an interview. "I hear from every one of them - it offsets their powerful earnings here domestically."

 

Fisher takes those complaints with a grain of salt.

 

"It brings to my mind the vision of Edward Munch’s painting 'The Scream'," he said, adding, "It's not the end of the world."

 

Fisher, who plans to retire from his post in March, holds views that are often far from those at the Fed's core. Still, the former hedge-fund manager says he feels his views are heard at the policy-setting table.

 

"The more income and investment flows we get, the better it is for our companies big and small to go out and hire American workers," Fisher said. "And it does help on the consumption side, if, for example, oil is denominated in dollars, it just helps us have cheaper goods."

 

While a stronger dollar does hurt net exports, he said, it puts less of a damper on U.S. job creation than it may have in the past because the U.S. economy has become less export driven.

*  *  *

And then there's Goldman's President Gary Cohn...

"the effects of the soaring dollar are just starting
to be felt; for US exports, manufacturing, and jobs - it is not going to
be positive."

 

*  *  *

Once again The Fed remains in a world of its own. Or perhaps this explains it...

"It is difficult to get a man to understand something, when his salary depends upon his not understanding it!"