by Jamie McGeever
Reuters.com
ORLANDO, Florida, April 15 (Reuters) – U.S. Treasury Secretary Scott Bessent on Monday repeated the mantra we’ve heard from his nine predecessors: “We have a strong dollar policy.” While the words are familiar, the conviction behind them may have softened.
It was former Treasury Secretary Robert Rubin who, 30 years ago in early 1995, declared that “a strong dollar is in our national interest,” articulating what has become one of the fundamental tenets of the modern global financial system.
The ‘strong dollar’ policy has always been about more than just the exchange rate, although a more expensive currency can help keep inflation and interest rates low. This policy has represented the world’s trust in the U.S., and, consequently, the greenback’s role as the lynchpin of the global economy.