By New Deal Democrat
The strength of the US dollar is the biggest reason why the US economy has been slowing down. In general, any YoY increase of 5% or more in the US dollar is a big negative for the economy in the following several quarters.
At the YoY peak, the broad US dollar was up over 20%. As of the Fed's update Monday, the broad US dollar is still up 10% or more last week, and it actually rebounded a little:
The good news is, as of Tuesday, the US dollar spot index against major currencies fell slightly below 5% YoY to 4.8%:
Hopefully the broadly weighted US dollar will follow suit, but we'll see. For now, there is continued pressure on US exports.