The U.S. isn’t broke, and the dollar isn’t in danger of collapse even after unprecedented stimulus measures enacted following the worst financial crisis since the Great Depression, according to Capital Economics Ltd.
Amy Valle is caught in a labor- market recovery that’s forcing some Americans to settle for less. Before she lost her job as a full-time health-department case worker last November, she was making $23 an hour. Now she’s paid $10 an hour as a part-time assistant coordinator in an after-school program.
The U.S. economy’s anemic rebound from the worst recession in six decades is pummeling workers while leaving bosses almost unscathed and neither President Barack Obama nor Republican challenger Mitt Romney is captivating these disaffected voters five months before the national election.
The dollar declined to its weakest level in almost two months after factory production in the U.S. unexpectedly declined in January by the most since May 2009, adding to evidence severe winter weather weighed on the economy.
Coming up in the global economy this week are a meeting of euro-area finance ministers, disposable income in Russia, German business confidence and U.S. retail sales. In Australia, the head of the central bank will comment on the Australian dollar, while a decision on interest rates is due from the Chilean central bank.