In what seems like an unstoppable event, the US dollar continues to lose value. (The US dollar is down again in early trade).
As I have been saying for months, the US dollars downward spiral will continue with no end in sight as the Federal Reserve strives to hit their inflation target.
Although the weaker dollar is stock market supportive, the fact that the dollar is losing so much of its purchasing power has the potential to pinch the consumer as now consumers will need more of these weaker dollars to buy everything.
In my opinion it is just a matter of time before the weak dollar starts to hurt consumers, as they watch their purchasing power whittle away. Moreover, because consumer spending is about 70% of the US economy, the weak dollar has the potential to hurt GDP moving forward.
