Jury out' on Trump's weaker dollar strategy
|Is the White House actually pursuing a weaker US dollar policy?
“The jury remains out as to whether the White House is actually quietly orchestrating a weaker dollar strategy. Trump’s recent description of the latest sell-off as “great” arguably underscores his emphasis on supporting manufacturing and lowering the trade deficit - policy goals that he is hoping to achieve with higher tariffs.
“Official communications from senior Republican officials suggest otherwise, however, notably remarks from Treasury Secretary Scott Bessent, who explicitly reaffirmed a commitment to a “strong dollar policy” in the aftermath of the president’s remarks.
“All things considered, we side with the view that Trump’s recent comments on the dollar were spontaneous, off the cuff utterings that do not signal a coordinated policy pivot (even if they align with the president's long-held personal views).
“This is obviously consistent with the president’s habit of speaking extemporaneously on economic topics, and the rapid intervention from Bessent the very next day is a cleanup job in our view.
“This is not the last we’ll hear of this topic, however, and any attempt of Trump to strong-arm a weaker dollar push into a prominent White House policy would undoubtedly present a serious downside risk to the greenback.”
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