Is a Full-Blown Currency War Next?

money 2082383 640Full-Blown Currency War Can No Longer Be Ruled Out, Pimco Says -Yahoo Finance/Bloomberg
"A full-blown currency war where major central banks and governments, including the U.S., deliberately weaken their currencies can no longer be ruled out, Pacific Investment Management Co.'s global economic adviser Joachim Fels wrote in a report.

The view is in line with a rising chorus of Wall Street analysts who warn that President Donald Trump's repeated complaints about the foreign exchange practices of key trading partners heightens the risk of U.S. intervention to weaken the dollar. Fels describes current conditions as a 'cold currency war, round three' that is at risk of escalating. 'Following a pause since early 2018, the cold currency war that has been waging between the world's major trading blocs for more than five years has been flaring up again,' Fels wrote....'Even the threat of outright dollar sales, coupled with continued verbal and tweeted 'weak dollar policy' interventions and, importantly, easier monetary policy by the Fed, could well do the trick,' according to Fels."