Thursday, February 23, 2017
Treasury secretary says a strong dollar is a 'good thing,' contradicting what Trump has said at times
Treasury secretary Steven Mnuchin said that the stronger US dollar is a good thing and signals investors' confidence in America, according to a new interview in the Wall Street Journal.
Mnuchin, the former Goldman Sachs banker and hedge fund manager, commented on the dollar's strength in the interview with the Journal's Rebecca Ballhaus.
"I think the strength of the dollar has a lot to do with kind of where our economy is relative to the rest of the world, and that the dollar continues to be the leading currency in the world, the leading reserve currency, and a reflection of the confidence that kind of people have in the US economy," Mnuchin told the Journal, adding its appreciation was a "good thing."
While this statement lines up with Mnuchin's position expressed during his Senate confirmation hearing, it does contradict some statements made by President Donald Trump.
Trump told the Journal in January that the dollar is too strong and it is hurting US companies.
"Our companies can’t compete with [Chinese companies] now because our currency is too strong," said Trump. "And it’s killing us."
The strong dollar has been the number one complaint of S&P 500 companies for over a year according to data compiled by FactSet.
Mnuchin's position does line up, however, with the views of Treasury secretaries in previous administrations.
Former Treasury secretary Jack Lew echoed similar sentiments in January after Trump's interview saying that a strong dollar is "good for the US" and "good for the world."