After a sizable run in the U.S. Dollar, President Trump says he’s not “thrilled” with it.
In fact, he tweeted that the dollar’s value makes it much harder for companies to compete.
“As your President, one would think that I would be thrilled with our very strong dollar. I am not! The Fed’s high interest rate level, in comparison to other countries, is keeping the dollar high, making it more difficult for our great manufacturers like Caterpillar, Boeing, John Deere, our car companies, & others, to compete on a level playing field,” he tweeted. “With substantial Fed Cuts (there is no inflation) and no quantitative tightening, the dollar will make it possible for our companies to win against any competition.”
As a result of the stronger dollar, the President is urging the Federal Reserve to act.
However, we must also consider that the U.S. dollar won’t go down is because it’s a safe haven, as noted by Michael Bordo, professor of economics at Rutgers University, as quoted by The Financial Times. “People will hold the dollar in a period of global uncertainty.”