Maury Obstfeld of PS Said better than I've ever said before (and with the best graphics *ever*):
Trump's advisers are reportedly considering two complementary policy changes.a proposal It is said Involves strengthening the president’s direct control over the Fed’s interest rate decisions and rulemaking.Meanwhile, Trump’s trade team, led by former U.S. Trade Representative Robert Lighthizer, clearly wants weaken the dollar exchange rate.
although some trump advisers Denying any plans to devalue the dollar, Trump's preference for lower interest rates and weaker currencies is It was evident during his first term. The proposed policy would make it easier for him to override the Fed's independence and achieve both goals. The result would be a potent inflationary cocktail.
Trump wants the dollar to weaken because he believes it “too strong”.
