Because we are operating with spare capacity in our factories and labor markets, higher exports and lower imports are fine. They help boost U.S. production to more fully utilize labor and capital and should not add to sustained inflation pressures, even with import prices moving a little higher and competitive pressure on import-competing industries easing a bit.
Some have feared that lagging demand for our assets would show up in lower prices for the assets themselves - that is, in increases in bond yields and declines in equity prices - as well as in lower exchange rates.