The dollar appreciated ~5% in real broad terms from October 2024 to January 2025 (consistent with markets pricing a 10% tariff), but from late January it gave up all those gains and returned to the starting point; Gagnon interprets this reversal as foreign investors recoiling from erratic policies, out-of-control fiscal policy, and anti-foreigner grievance rhetoric.

causalpending

Speaker

Joseph Gagnon

Evidence Quote

if I was a foreign investor would I really want my money in a country that blamed people like me for its problems

Source

The changing dollar regime: An updatePeterson Institute for International Economics
Created: 6/18/2026, 1:57:48 PM

My Notes

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