Get ready for another rally for the U.S. dollar. It's what economists call "policy divergence," and it means investors will pour their money into greenbacks. Here's how it will work and how investors could profit.
The Federal Reserve, which is the central bank for the U.S., is expected to have policies that will increasingly diverge from those of the world's other major central banks, such as the European Central Bank and the Bank of Japan.
In the simplest terms, the Fed will continue to increase the cost of borrowing money, while most of the rest of the world will either lower their short-term lending rates or leave them unchanged. Read more here.
Photo by Avinash Kumar on Unsplash
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