""Yes, it is true a weaker dollar boosts exports," Kaplan told Bloomberg TV on Tuesday. "However, we have in the United States $39 trillion of debt, on its way to $40 trillion plus. And when you have that much debt, I think stability of the currency probably trumps exports. And so I actually think the U.S. is going to want to see a stable dollar.""
""The U.S. has long enjoyed the "exorbitant privilege" of the dollar serving as the world's reserve currency. With such built-in demand for dollar assets like Treasury bonds, the government can borrow money at lower rates than would otherwise be possible. But Trump's efforts to upend the postwar global order have created doubts about U.S. financial dominance and the sustainability of the national debt if that advanta""
The U.S. dollar has fallen roughly 10% over the past year and 1.2% this month amid trade shocks, debt worries, central bank independence concerns, and strained alliances. President Donald Trump welcomed the decline, citing business benefits, while Treasury Secretary Scott Bessent reaffirmed a strong-dollar policy and denied intervention rumors. Former Dallas Fed President Robert Kaplan said investors sought tail-risk hedges and noted continued demand for U.S. stocks. U.S. federal debt approaches $39 trillion, and the dollar's reserve status has lowered borrowing costs. Political shifts have created doubts about financial dominance and long-term debt sustainability.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]