Why Altering The Dollar Price Could Be A Good Move
This week comments from President Donald Trump against the Federal Reserve offended a couple people. As they believe that a President should in no way shape or form tapper with the autonomy of the Federal Reserve. As liberals always want to remind us though we live in a new age! One where everyone including the president has the right to freedom of speech. Obviously, the problem is that the president’s words are able to have very high implications. Both in the political and financial realms. It’s been no secret that the president was not a fan of the Federal Reserve’s intention to keep hiking interests rates. He is actually more into having a bit of a weaker currency. Before we begin to think of this as unpatriotic let’s look at what a weaker dollar can bring! For starters, a weaker dollar could really help in negotiating new trade deals!
Is The President Reaching Too Far?
Critics, like we said, are pointing to the president’s tampering with the autonomy of the Federal Reserve. In reality, he is using his influence, but he isn’t directly ordering anything. The president has openly said that the U.S. is at a disadvantage because countries like China and even Mexico can deliberately manipulate their currency. A weaker dollar would mean that more foreign companies would be willing to buy more U.S. goods. As their currencies will be better suited to stand up to the dollar. For that reason, the U.S. would have an easier time negotiating trade deals and fighting the trade deficit. At the same time, it could benefit American workers. As companies could recalculate the costs of moving production to other countries resulting in saving more jobs and in turn a stronger economy!