Will Bessent or Warsh Be the Scapegoat If the Dollar Falls?

President Donald Trump couldn’t be any clearer about what he wants on interest rates — he wants them cut, quickly and not a little. Soon he’ll most likely have a chair of the Federal Reserve who’s willing to oblige. But there’s no such clarity on what the president and his officials want for the dollar — and that could soon be a problem.

Trump was recently asked what he thought about the past year’s drop in the currency — a fall of about 10% in trade-weighted terms since he took office, to its lowest point since 2022. “I think it’s great,” he said. “I think the value of the dollar — look at the business we’re doing. The dollar’s doing great.”