Asian Economist

Kok Peng Chan

Kok Peng has over three decades of experience covering the global economy and financial markets. He spent the bulk of his career in top global investment banks where he covered the Asian economies and stockmarkets. During this period, he travelled extensively to meet clients that cut across business lines. They include fund managers, hedge fund managers, private banking clients, corporates, and fixed income investors in the US, Europe, Japan, Singapore, Hong Kong and Australia. He is well liked by clients because of his commitment to a consistent framework and the ability to explain economic and financial developments with actionable investment recommendations. As a result he was ranked among top 3 economists in many surveys and polls conducted by financial magazines.

Beyond the Current Account Deficit: What Drives the US Dollar?

FX Snapshot - DXY—Quiet Comeback of Just Resting?

Macroeconomics

<ul>
<li>The Fed is buying Treasuries again—but this is not QE: purchases are mainly short-term bills designed to maintain banking-system liquidity, not stimulate the economy</li>
<li>Rising Fed assets is not always “money printing”: reserves remain near US$3 trillion as the liquidity created has been largely offset by Treasury operations, currency demand and other Fed liabilities</li>
<li>This helps explain the US dollar’s resilience: bill purchases barely suppress long-term yields, unlike conventional QE, so the direct downward pressure on the dollar is limited</li>
</ul>


The Fed is buying Treasuries again—but this is not QE: purchases are mainly short-term bills designed to maintain banking-system liquidity, not stimulate the economy
Rising Fed assets is not always “money printing”: reserves remain near US$3 trillion as the liquidity created has been largely offset by Treasury operations, currency demand and other Fed liabilities
This helps explain the US dollar’s resilience: bill purchases barely suppress long-term yields, unlike conventional QE, so the direct downward pressure on the dollar is limited


The Fed Is Buying Treasuries Again—but This Is Not Another Round of Money Printing