GOP senators pass infrastructure bill, record inflation follows
By Jenny Goldsberry
After 19 Republican Senators, including Minority Leader Mitch McConnell (R-KY), voted to pass President Biden’s infrastructure bill Tuesday, inflation is nearing record highs. While this bill contributed it the US dollar’s rise, experts also credit the most recent jobs report.
The Senate passed the bill 69 to 30. They included Republican Sens. Roy Blunt (R-MO), Richard Burr (R-NC) Bill Cassidy (R-LA), Shelley Moore Capito (R-WV), Susan Collins (R-ME), Kevin Cramer (R-ND) Mike Crapo (R-ID), Deb Fischer (R-NE), Lindsey Graham (R-SC), Chuck Grassley (R-IA), John Hoeven (R-ND), Lisa Murkowski (R-AL), Rob Portman (R-OH), Jim Risch (R-ID), Mitt Romney (R-UT), Dan Sullivan (R-AL), Thom Tillis (R-NC) and Roger Wicker (R-MS).
Head of G10 FX research at Credit Agricole Valentin Marinov spoke with Reuters about the result of the bill.
“The stronger than expected non-farm payrolls report on Friday boosted the dollar across the board as it seemingly helped the Fed move closer to QE (quantitative easing) taper and policy normalization,” Marinov told them. “In addition, the U.S. Senate has passed President Biden’s infrastructure package and thus boosted market expectations of growing U.S. Treasury issuance at a time when the Fed is expected to announce their intention to reduce their U.S. Treasury buying.”
As a result, US consumer prices also increased by 5.4%. They were expected to rise, but by 5.3% only. Prices haven’t been this high since August 2008.
Meanwhile, the Japanese yen, Chinese yuan and Korean won are moving in the opposite direction. All have been on the decrease for weeks now.
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