Coming Soon: More For Your Money

Coming Soon: More For Your Money Photo (cc) by GoodNCrazy

The dollar is stronger than it’s ever been this decade, and its added buying power will trickle down to your wallet this year, experts says.

As Bloomberg Business reported today:

“The 24 percent surge in the currency since June will take time to gradually ripple through the world’s largest economy, first showing up in lower costs for goods imported by American companies and then in the prices paid by consumers, according to economists at Barclays Plc, Goldman Sachs Group Inc. and JPMorgan Chase & Co. That means the dollar will be the next check on inflation, replacing oil as fuel costs stabilize.”

The cost of imported goods and services has been dropping for seven months now.

Items that may carry shrinking price tags include clothing, electronics and automobiles, Bloomberg reports: “That will give an added boost to household buying power, which is already benefiting from the lowest gasoline prices in six years and larger job gains.”

So although consumers still aren’t earning more money — America hasn’t had a pay raise in 35 years, a recent study shows — their money should buy them more.

“You can’t expect a better environment for consumers,” Gregory Daco, lead U.S. economist at Oxford Economics in New York, told Bloomberg. “The stronger dollar is an additional layer of downward pressure on inflation.”

Of course, this good news may also trigger some bad news. Economists speculate that by as early as June, the Federal Reserve could raise interest rates for the first time since 2006.

“The central bank may offer more clues when officials meet next week,” Fortune reports. “If the Fed chooses to raise rates soon, it would easily add between $1 trillion to more than $2 trillion to America’s debt over the next decade, compared to a scenario in which rates remain low.”

And as we reported yesterday, America already has a record amount of credit-card debt.

Are you looking forward to seeing the dollar’s added buying power? Ore are you worried about its possible side effects? Let us know in a comment below or on Facebook.

Popular Articles

15 Smart Ways to Organize Every Room of Your Home
15 Smart Ways to Organize Every Room of Your Home

Are you sick of clutter and digging around to find things? Get your household organized with these brilliant and inexpensive tricks.

These 6 Lifestyle Changes Might Help Prevent Dementia
These 6 Lifestyle Changes Might Help Prevent Dementia

Science says these practices can lower the risk of cognitive decline as we age.

10 Food Staples That Are Easy and Cheap to Make Yourself
10 Food Staples That Are Easy and Cheap to Make Yourself

Making any of these key foods yourself will improve your meals and your budget — not to mention your health, in some cases.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Comments