On Thursday, May 22, the White House Chief Economist denied the existence of a secret currency agreement aimed at weakening the US dollar, stating that a strong dollar is beneficial to the United States.
The Chairman of the White House Council of Economic Advisers, Stephen Miran, affirmed America’s commitment to a strong dollar policy during an interview on Bloomberg’s Big Take DC podcast. He emphasized that Treasury Secretary Scott Bennett is the official spokesperson for monetary policy and clarified that there are no secret efforts to weaken the dollar currently underway.
In recent weeks, currency markets have experienced turbulence as traders speculated that US trading partners might agree to appreciate their currencies against the dollar as a means to address trade imbalances.
President Trump has consistently criticized other countries for intentionally devaluing their currencies to gain a commercial advantage over the US. Following Trump’s announcement of a 90-day tariff suspension on April 9, Asian currencies surged significantly. The New Taiwan Dollar appreciated nearly 10%, marking the largest increase since 1988, while the South Korean Won rose by 6.4%. The Bloomberg Dollar Spot Index has declined over 6% since Trump took office.
Although Miran is not directly involved in trade negotiations, he affirmed that there have been no changes to monetary policy.
Miran was appointed as the White House Chief Economist by Trump in December of last year. Prior to his tenure as Chief Economist, Miran, who previously worked at the hedge fund Hudson Bay Capital, authored a paper in November discussing potential forms of the “Mar-a-Lago Accord,” sparking discussions in the forex market about the possibility of a significant agreement aimed at weakening the dollar.
Before assuming the role of Treasury Secretary, Bennett also considered such an agreement. However, following his appointment, Bennett has strongly supported the policy of a strong dollar, asserting that a robust dollar is beneficial for the country. He also advocates for the commitment made by the US to the Group of Seven (G7) declaration that currencies should be determined by the market.
In a statement, the US Treasury Department highlighted that during the G7 meeting in Banff, Canada, the Treasury Secretary and the Japanese Finance Minister reiterated their shared belief that exchange rates should be market-determined, with the current USD/JPY rate reflecting fundamentals.
In an interview with Bloomberg on February 6, Bennett reiterated, “Under President Trump’s leadership, the policy of a strong dollar remains unchanged.”
“We want a stronger dollar,” he added. “We also do not want to see other countries manipulating trade by devaluing their currencies.”
Trump has vowed to uphold the global dominance of the US dollar and supports policies recommended by economists and strategists that could boost the dollar’s value.
Miran emphasized on the podcast that the significance given to his paper exceeds that of government policies and clarified that the paper was not intended to advocate for any specific policy direction.