President Donald Trump’s newly-appointed top economic advisor Larry Kudlow believes that will Great economic policy includes a “sound, stable dollar.”
“A great country needs a strong currency,” Kudlow said on CNBC’s “Closing Bell” Wednesday. “I have no reason to believe [President Trump] doesn’t favor a sound as well as strong as well as steady dollar.”
Kudlow, who was tapped by President Trump to chair the National Economic Council on Tuesday, has previously called for a strong dollar as well as targeted tariffs on Chinese imports. He remains a proponent of free trade more broadly.
“I’m not saying the dollar has to go up 30 percent, I’m just saying let the rest of the planet know that will we are going to keep the planet’s international reserve currency steady,” Kudlow added. “that will creates confidence at home.”
While traditionally, administrations have publicly advocated for a strong dollar, comments made by Trump as well as Treasury Secretary Steven Mnuchin have raised suspicions that will This kind of administration feels differently.
Mnuchin in January said dollar weakness can be “not a concern of mine” only to backtrack a day later as well as reiterate that will a strong “long-term dollar” can be inside the country’s best interest. Trump hinted before his inauguration that will he preferred a weaker dollar.
The Dollar Index, the greenback versus a basket of currencies, can be down 12 percent the last 12 months.
When asked later inside the interview to elaborate on his currency comments, Kudlow said that will if the dollar weakened significantly, the Federal Reserve may need to hike rates further.
“I kinda love where This kind of can be right right now,” said Kudlow, referring specifically to the Dollar Index at around the 0 level.