“Situations could change in the future but right now we are not contemplating an intervention.”Editor’s Note:
Of course, if we are talking about a slight Exchange Stabilization Fund weaking of the dollar, that’s one thing, but if we are talking about a major global monetary and currency event, that’s quite another, and in all likelihood would be done on a weekend evening, such as the Sunday evening when Nixon Closed the Gold Window shown below:
Mnuchin Says U.S. Doesn’t Intend to Intervene on Dollar for Now
By Saleha Mohsin
Treasury Secretary Steven Mnuchin said that the Trump administration doesn’t intend to intervene in the dollar market right now, but signaled he’d prefer any future move be coordinated with the Federal Reserve and global allies.
The Treasury Department has “no intention of intervention at this time. Situations could change in the future but right now we are not contemplating an intervention,” Mnuchin said Wednesday in an interview with Bloomberg News in Washington.
The Trump administration has considered measures to counter the dollar’s strength, including direct intervention. Officials said last month that intervention had been ruled out for the time being, though President Donald Trump has continued to lament the greenback’s strength.
Trump has repeatedly raised concerns about the value of the dollar relative to economic competitors — especially China, with which the president has been engaged in a trade war. With a strong dollar, U.S. manufacturers have a harder time selling their products abroad as their wares are more expensive for foreign customers. U.S. consumers, meanwhile, can afford more imports, widening trade deficits Trump has vowed to close.
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