Dollar’s Trump Surge Collides With the Fed
MAGA’s chieftain likes a weak greenback, but wait for the central bank before getting caught out on that limb.
Reaction to a second Trump presidency is principally a continuation of what global bond, equity and currency markets had been anticipating for several weeks. But it's missing one important factor - qualification on what policies a President Donald J. Trump will actually seek to enact.
For instance, Trump doesn’t like the dollar too strong, or indeed interest rates too high. In April, he called the 34-year high of the dollar to the Japanese yen a "disaster." In a Bloomberg Businessweek interview published in July, he said the strong dollar was a “a big currency problem” and a “tremendous burden.” As recently as Tuesday, in a post on Truth Social, he said that the dollar's new peak would be a “disaster for our manufacturers and others.”