A potential Trump administration is unlikely to deliberately devalue the dollar, according to Trump’s economic advisor Scott Bessent in an interview with the Financial Times. Bessent reassured that the U.S. government, if led by Trump, would continue to support a strong dollar, aligning with the country’s long-standing policy.
Despite earlier calls by Trump and his running mate for a weaker dollar to benefit manufacturing, Bessent emphasized that deliberate devaluation is not on the agenda. He stressed the importance of maintaining the USD as a “reserve currency” and indicated that sound economic policies would naturally result in a strong dollar.
Bessent, the founder of Key Square Group and a former chief investment officer at George Soros’ family office, is highly regarded in the financial world. Trump has praised him as one of the smartest individuals on Wall Street and a potential candidate for the Treasury Secretary position.
Regarding Trump’s proposal to impose inflationary tariffs on imported goods, Bessent suggested that these measures may be moderated during negotiations with trading partners. He described Trump as a “free trader” at heart and predicted a process of escalation followed by de-escalation in trade talks.
The upcoming U.S. election has seen a shift in the prediction markets, with Republican candidate Donald Trump gaining ground over Democrat Kamala Harris. While a Trump presidency could have positive implications for digital assets, it is expected to maintain a strong dollar, which may limit gains in riskier dollar-denominated assets like cryptocurrencies.
As Election Day approaches, the economic policies of the candidates are under scrutiny. Bessent’s insights offer a glimpse into the potential economic direction of a Trump administration, emphasizing stability and a commitment to a robust dollar. While uncertainties remain, his perspective provides valuable context for investors and observers following the election campaign.