President Donald Trump has asked aides to look into ways to weaken the dollar, according to Bloomberg.
Experts said such a move would amount to currency manipulation and could undermine US credibility abroad.
Trump has grown increasingly frustrated with the strength of the dollar as his administration pursues its signature “America First” agenda.
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President Donald Trump has long hammered trade partners with accusations of intentionally devaluing their currencies, a practice that can make a country’s exports cheaper. But as tariffs disputes weigh on the economy ahead of the 2020 elections, he appears to think the US should give it a try.
Bloomberg News reported Wednesday that Trump has asked aides to look into ways to weaken the dollar, a move that experts said would amount to currency manipulation — and something that could undermine US credibility abroad. In interviews with recently-announced Federal Reserve nominees Judy Shelton and Christopher Waller, the president also asked about the greenback.
The White House declined to comment, and the Treasury Department did not respond to an email inquiry.
Such an action would be precluded by commitments among economic powers and with the International Monetary Fund, said Jason Furman, the last chairman of the White House Council of Economic Advisers under President Barack Obama.
“So the end result of this attempt to weaken the dollar will just be to weaken our leverage the next time we are trying to stop another country from manipulating their exchange rate,” Furman added.
Trump has grown increasingly frustrated with the strength of the dollar as his administration pursues its signature “America First” agenda, levying punitive duties on major trading partners. Economists said the dollar has strengthened in part because of policies including the $1.5 trillion tax-cut package that was passed in 2017. …read more
Source:: Business Insider