The recent surge in the U.S. dollar could soon lead to some kind of economic or financial crisis, according to Michael Wilson, chief U.S. equity strategist at Morgan Stanley.
Wilson said in a note that even though such events are hard to predict, conditions are “in place” for the dollar to trigger such a development, according to Bloomberg. The rally has created an “untenable situation” for risk assets like stocks. “What’s amazing is that this dollar strength is happening even as other major central banks are also tightening monetary policy at a historically hawkish pace,” Wilson wrote.
