Ag economist says he’ll be watching three key indicators
Ag economist David Widmar says, from an agricultural standpoint, there are three key economic indicators he’ll be watching in coming weeks.
One of those is exchange rates. Widmar says if the U.S. dollar continues to strengthen, it will be a headwind for exports.
He says he’s also watching interest rates.
“The story right now is lower rates of interest, but we’ve also got to think about what interest rates are going to do over the next six to eight months,” Widmar says. “We could see a situation where interest rates start to creep higher, especially on these longer-term rates.”
Widmar says the other key indicator he’ll be watching is inflation.
“This whiplash of economic activity, from really negative GDP growth to really rapid GDP growth, could have some consequences that we’ve got to keep an eye on.”
Widmar made those comments during a webinar on COVID-19’s economic impact, sponsored by Farm Credit Services of America.