Treasury Secretary Scott Bessent: No Intervention in Currency Market, Strong Dollar Policy

U.S. Monetary Policy and the Dollar

• 🇺🇸 The U.S. maintains a strong dollar policy, which is achieved by setting the right economic fundamentals.
• 💡 President Trump's policies, including tax and regulatory reforms, aim to make the U.S. the best place to build businesses.
• 📈 Over time, sound policies and reduced trade deficits should lead to dollar strength.

Currency Market Intervention

• 🚫 When asked about intervening in the currency market to strengthen the yen, Secretary Bessent stated, "Absolutely not."
• 💬 The Treasury does not comment on specific market actions but reiterates its commitment to a strong dollar policy.

Economic Growth and Inflation Outlook

• 🚀 The economy is projected for strong growth, with Atlanta Fed's GDP Now estimate at 5.4%.
• ⚠️ The administration aims to achieve this growth without sparking inflation by focusing on increasing supply through deregulation.
• 📉 This approach contrasts with past inflation, which was attributed to demand shocks from government spending and supply constraints from overregulation.

Productivity and Inflation Measurement

• 📈 Wage growth is occurring alongside substantial productivity gains, which do not inherently lead to inflation.
• 📊 Observable inflation, based on quick sampling, is reported to be substantially below 2%, with measured inflation (like rents) also showing decreases.