Currency markets send a warning on the US economy

Lawrence Summers writes that the US dollar has fallen nearly 10% on a trade-weighted basis and over 10% against the euro, despite factors that would normally support it. He notes that US 10-year yields sit about 230 basis points above German yields, implying markets expect a dollar decline of over 25% over the next decade.

He warns the weakness is magnified by newly announced steel and aluminium tariffs.