Bloomberg: Dollar is a potential catalyst for US and global recession

The dollar’s remarkable ascent is causing harm to the US economy, Report informs citing the Bloomberg.

Some even worry it could trigger a recession.

It is noted that the surge tends to erode the profits of U.S. multinationals that help power the world’s largest economy, and also raises costs for foreign corporations that have trillions of dollar-denominated debt.

In particular, the negative impact of the dollar is felt by companies such as Coca-Cola, Caterpillar, Boeing. Economists believe that any further strengthening of the US currency could be a challenge for the world economy.

Morgan Stanley and Brandywine Global Investment Management see the dollar as a potential catalyst for the next US and global recession predict a 25 % drop in the next five years.