Quick Note: Trump's Collision Course With USD Weakness
CUTTING THROUGH THE NOISE
“A weak dollar and plentiful, cheap energy could power a boom. … A strong dollar should emerge by the end of his term if the US reshoring effort is successful.”- Scott Bessent Jan 2024
Trump’s Policy Path Beyond Tariffs
In order for Trump’s economic policy goals can be divided into 2 broad areas: Domestic, and International.
DOMESTICALLY: He wants one (big) thing.
To redirect economic investment towards manufacturing while reducing gov’t bloat-spending.
He has 3 basic tools to do so:
Plausible means to lowering spending and raising revenues- DOGE plus Tax cuts
Stable cheap energy- watch post UKR summit, Drill baby drill etc
Weaker USD now for stronger USD later1- Tariffs only make that harder
Bessent has said as much before nomination.
INTERNATIONALLY: He also wants only one big thing
For the US to come to the negotiating table with China on stronger footing than the US currently has been. 2
Here's his toolbox to do that: