In part, the strength of the dollar reflects the fact that our economy has been performing so well and has offered international investors profitable opportunities along with a safe haven from political and financial turmoil. The strong dollar has made imports cheap and has helped keep inflation low-to the benefit of U.S. consumers and the distress of some U.S. producers.
We can’t count on low world commodity prices or a strong dollar continuing far into the future, and both have their downsides for us and for others. Some features of the global economy, however, seem likely to endure.