Is the mirroring of 1980s policy conditions a boon or a bust for high bond yields and a strong dollar?

– Mirroring 1980s policy conditions can provide historical precedent and insights for analyzing the current situation. – High bond yields can attract investors by offering potentially higher returns.
– A strong dollar can contribute to increased purchasing power for US consumers and investors.

– The 1980s policy conditions may not align perfectly with the current economic environment, resulting in misleading comparisons.
– High bond yields can also indicate increased borrowing costs for businesses and individuals.
– A strong dollar can make US exports more expensive and less competitive in global markets.


Bank of America states that the recent loose fiscal policy during the pandemic, paired with the sudden hawkishness of the Federal Reserve, reflects a familiar trend from the 1980s.