- Miller Samuel Real Estate Appraisers & Consultants - https://www.millersamuel.com -

Yuan Inflation?

Inflation seen as key to Fed policy. [1]

Tomorrow marks the likely 10th 1/4 point increase in the Federal Funds rate since June 2004 and with the jobs report [2] showing growth, an increase seems almost certain.

The Chinese currency [Yuan] was recently strengthened by 2% [3], which could reek havoc with the housing market if allowed to float as much as 40% to which would be needed to benefit the manufacturing sector. The US would see a competitive advantage in manufacturing, allowing prices to increase, placing upward pressure on rates, tempering activity in the housing sector.