A Weaker Dollar Has Always Been Part of Trump’s Plan

Perils of a Falling Trump Dollar

President Trump this week said he thinks a weaker dollar is “great,” but he should be careful what he wishes for. 

Many politicians over the years have contemplated a weaker greenback as an economic miracle cure. They often discover that a weak dollar is a liability.

How retro. For decades, devaluationists held that a weaker currency boosts exports and employment while a strong currency can throttle an economy. 

Credit Treasury Secretary Scott Bessent for understanding this and engaging in moral suasion with foreign-exchange traders last week to help Tokyo stabilize the yen. 

Credit to him as well for saying Wednesday that the U.S. has always had a “strong dollar policy,”

WSJ editorial Jan. 28, 2026

https://www.wsj.com/opinion/donald-trump-weak-dollar-economy-exchange-rates-101b278a


Sell America

Fem faktorer bidrar till att investerare minskar sin USA-exponering

JP Morgan Chase har i en analys 

https://privatebank.jpmorgan.com/apac/en/insights/markets-and-investing/tmt/debunking-the-sell-america-trade-why-europes-move-could-fall-short

försökt slå hål på vad man ser som en felaktig marknadssyn, men det finns trots allt en rad faktorer som gör att investerare nu söker sig bort från USA.

Sammantaget visar den senaste tidens utveckling att även om investerare inte helt följer temat om att sälja USA, så är det helt klart att exponeringen minskas.

Emanuel Sidea DI 2 februari 2026 

https://www.di.se/nyheter/darfor-svalnar-intresset-for-usa/


A lower exchange rate is one more lever for the U.S. to boost growth, but it chips away at America’s traditional role as a safe haven.

The dollar’s decline isn’t run-of-the-mill market noise, but the natural result of the U.S. giving priority to the dollar’s domestic role over its global one. 

This doesn’t by a long shot spell the end of its reserve status. But it is another tremor shaking up assumptions about the global economy.

The last concerted effort by the U.S. to lower the dollar’s value was the Plaza Accord in 1985 with other major nations, followed by the Louvre Accord in 1987 to arrest its decline. 

Since then, dollar policy has mostly consisted of benign neglect: rhetorical support for a strong dollar without any supporting action.

Greg Ip Wall Street Journal Jan. 29, 2026 

https://www.wsj.com/finance/currencies/a-weaker-dollar-has-always-been-part-of-trumps-plan-733c9adc


Plaza Accord

Donald Trump briefly owned the Plaza--hence his cameo appearance giving directions to Macaulay Culkin in Home Alone 2: Lost in New York set in--where else--the New York Plaza.

https://englundmacro.blogspot.com/2022/05/buzz-of-1980s-style-plaza-accord.html


Bessent:“the US always has a strong dollar policy.” 

https://englundmacro.blogspot.com/2026/01/bessentthe-us-always-has-strong-dollar.html




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