Part 5/11:
Advantages for Exporters:
A weaker dollar makes US goods more competitive abroad, potentially boosting exports for manufacturers, farmers, and other producers.
Costs for Consumers:
On the flip side, imported goods become more expensive, leading to higher prices for electronics, clothing, and other imported items. This inflationary pressure can erode purchasing power and increase costs on loans tied to interest rates, like mortgages and car loans.
Government and Federal Reserve:
For the US government, a weaker dollar combined with rising interest rates means higher costs to service debt, which could force difficult budget decisions or spending cuts.