Asks if dollar weakness raises risk of import inflation, noting tariffs should appreciate currency not depreciate it.
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Michael Gapen
Trade channel is small - imports not significant contributor to inflation. Historically unusual for import prices to drive US inflation.
Michael Gapen
Net international investment position key: rest of world holds $62T in US dollar liabilities, can't recycle elsewhere.
Michael Gapen
If secular downward trend in dollar, need to hedge more due to geopolitics, which could fuel weakening trend.