As American aerospace giant Boeing is still dealing with the 737 Max crisis, the company’s poor performance could have consequences for the entire US economy, slowing growth and affecting the greenback.
Last week, US Treasury Secretary Steven Mnuchin warned that the situation with the company could cut the country’s GDP this year by half a percentage point, as it is one of the largest US exporters.
Moreover, the company’s troubles may also weaken the dollar, the chief global strategist at Euro Pacific Capital, Peter Schiff, believes.
“Over the long term there’ll be a recovery, but in the short run certainly this will weight on our exports, which could also weigh on the dollar,” he told RT’s Boom Bust. “I’ve been thinking that the US dollar was headed lower anyway, but if we end up with bigger trade deficits, in part because we have fewer exports of aircraft, that is going to be another factor of many that I think will be weighing down the dollar and the US economy.”
For more stories on economy & finance visit RT’s business section