Trump administration hopes it can just talk dollar down

Section:

Trump Decides Against Currency Intervention After Meeting About Ways to Weaken Dollar

By Kayla Tausche
CNBC, New York
Friday, July 26, 2019

President Donald Trump has decided not to intervene in U.S. currency markets after convening Cabinet officials and top level economic advisors Tuesday to discuss the issue, according to Larry Kudlow and two other people familiar with the meeting.

Two senior administration officials, who declined to be named, said the primary discussion at the meeting of trade principals was on ways to weaken the dollar. Kudlow, Treasury Secretary Steven Mnuchin, Trade Representative Robert Lighthizer, Agriculture Secretary Sonny Perdue, deputy chief of staff Chris Liddell, trade advisor Peter Navarro, and Council of Economic Advisors chief Tomas Philipson attended the meeting.

... Dispatch continues below ...


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"He says, 'There's a problem -- what are we going to do about it?'" said the official, referencing Trump's long-running frustration with currency strength that he sees as an impediment to closing trade deficits.

Among the ideas debated, the officials said: Implementing capital controls -- an idea viewed as extreme by most participants in the meeting -- or having Mnuchin and Kudlow actively "jawbone," or talk down, the dollar on television.

Most participants saw capital controls as an extreme option. Navarro had advocated for intervention, but didn't make it through 10% of his presentation, according to a senior official. The anti-interventionists in the room were "armed to the teeth," this person added.

People briefed on the meeting said it broke without a decision to pursue a concerted new currency policy. They acknowledged, however, that the president hopes media appearances continue to help his cause. ...

... For the remainder of the report:

https://www.cnbc.com/2019/07/26/trump-decides-not-to-weaken-the-dollar-a...

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