Súper Dólar?

Traders are worried about the 'reforms' the new government has in mind. In other words spending that will increase the deficit and weaken the peso. The current account deficit in Mexico has been less than the US, but that could change. Morena won big which means they can pass legislation. It is potentially similar to the first two years of the Biden administration when the democrats controlled both the senate and congress. We got the so called inflation reduction act that added to the deficit. The Federal Reserve Bank is combatting the inflationary effects of deficit spending with interest rate hikes. This was all supposed to be transitory and the Fed would lower rates later this year, but so far inflation has not come down enough for that to happen.