The Strong Dollar Lie

On January 27th, Donald Trump looked at a dollar sliding to four-year lows and said “I think it’s great.” Treasury Secretary Scott Bessent went on CNBC a day later insisting “the strong dollar policy is completely intact” and “we want the dollar to be strong.”

BUT, here’s what Bessent actually wrote in his January 2024 investor letter, before he became Treasury Secretary: “Weakening the dollar early in his (Trump) second administration would make U.S manufacturing competitive.”

Remember, a weaker dollar makes US exports mechanically cheaper.

So which is it? The answer: Both. Say “strong dollar” for the cameras while systematically pursuing weakness through policy.