Trump's Administration Backs Strong Dollar Policy, Says Bessent

U.S. Treasury Secretary Scott Bessent said Friday that President Donald Trump remains committed to a strong dollar policy, despite the recent decline in the U.S. currency amid broader market fluctuations.

Speaking to CNBC, Bessent emphasized that the core of a strong dollar strategy lies not in short-term currency movements, but in fostering an economic environment that supports capital inflows and investment in dollar-denominated assets.

“The essence of a strong dollar policy comes down to one question: Are we taking the necessary steps to create a supportive environment for it?” Bessent said.

His remarks follow recent comments by President Trump, who described the dollar’s late-January drop to its lowest level in four years as “great,” sparking debate over whether the administration’s rhetoric aligns with traditional strong-dollar doctrine.

He argued that the administration’s broader economic agenda underpins the dollar’s long-term strength. He cited tax reforms, trade measures, deregulation efforts, energy policy initiatives, and steps to secure U.S. sovereignty over critical minerals as factors enhancing the country’s attractiveness to global capital.

“Do our tax, trade, deregulation, and energy policies, along with reaffirming control over critical minerals, make the United States the best place for capital in the world?” Bessent said. “I don’t think anyone has done this quite like President Trump.”

The dollar has faced volatility in recent weeks, pressured by shifting risk sentiment and evolving expectations around U.S. monetary policy.