https://www.forexlive.com/news/trump-running-mate-vance-a-supporter-of-us-dollar-devaluation-make-it-easier-to-export-20240715/https://archive.md/pGgA5Donald J. Trump’s selection of Ohio Senator J.D. Vance to be his vice-presidential nominee pairs him with a kindred spirit on trade, taxes and a tough stance on China. But it is their shared affinity for a weak dollar that could have the most sweeping implications for the United States and the global economy.
“As your president, one would think that I would be thrilled with our very strong dollar,” Trump said in 2019, explaining that U.S. companies like Caterpillar and Boeing were struggling to compete. “I am not!”
It is not clear how Trump would go about weakening the dollar. His Treasury Department could try to sell dollars to buy foreign currency or try to persuade the Federal Reserve to just print more dollars.
“I know the strong dollar is sort of the sacred cow of the Washington consensus, but when I survey the American economy, and I see our mass consumption of mostly useless imports on the one hand, and our hollowed-out industrial base on the other hand, I wonder if the reserve currency status also has some downsides, and not just some upsides as well,” J.D. Vance said.
Mr. Powell responded by noting that the United States benefits from its reserve currency status, which makes it possible to buy goods all over the world with dollars. He also said there was not an obvious currency to replace it.
The 2024 Republican Party platform calls for keeping the dollar as the world’s reserve currency, but Mr. Trump and Mr. Vance could still try to weaken it if elected this year. Robert Lighthizer, Mr. Trump’s former trade adviser, who could be a candidate to be his next Treasury secretary, has been mulling ways to devalue the dollar if the former president wins, Politico reported this year.
Trump has called for imposing a 10 percent levy on all imports and a 60 percent duty on imports from China.
