Bessent: The Strong Dollar Concept is Not Just About Exchange Rates

On June 24, U.S. Treasury Secretary Scott Bessent differentiated between maintaining a strong dollar policy and merely focusing on exchange rates. 'When people talk about a strong dollar, I don't think it's just the Bloomberg Dollar Index,' Bessent said in response to questions after a speech at the Economic Club of New York on Tuesday evening. 'I think it means we are taking various measures to lay the groundwork for people to want to come to this country, whether it's tax certainty, regulatory certainty, or energy certainty.' He stated that a strong dollar is not contradictory to a robust manufacturing sector. 'Germany used to be an industrial powerhouse, and they relied on a strong currency'; this made Germany more efficient, innovative, and productive. Regarding the dollar's decline since early last year: 'I don't wake up thinking, great, this is helpful for the economy. I think it's just price fluctuations on the screen.' He noted that currency depreciation in low-cost manufacturing countries could be detrimental to the U.S.; 'I often think this isn't necessarily because of a strong dollar. Maybe—like Southeast Asian countries, because they manage their currencies the most—but it could also just be weakness in other currencies.' (Sina Finance)