President Donald Trump’s Treasury Secretary Scott Bessent said it was wrong to suggest that he and the president were at odds over the dollar.
During an interview with CNBC on Friday, Scott dismissed any talk of disagreement between the two sides. Asked whether Trump favors a weaker dollar while promoting a stronger dollar, he said, “That’s the wrong choice.”
This was announced after a flurry of public comments caused confusion. On January 27, President Trump told reporters he was not worried about the dollar’s decline, saying, “No, I think it’s great.” The next day, Scott said that the United States had “always had a policy of strengthening the dollar,” and that there was no one at the Treasury Department who was trying to weaken the dollar, especially against the Japanese yen. His comments caused the dollar to rise. President Trump’s previous views had helped drag the situation down.
Scott tried to bridge that gap. He said the debate over the dollar is not just a matter of words, but whether the U.S. is setting the right conditions for the dollar to remain strong. He pointed to President Trump’s tax policies, energy plans, push for deregulation, and trade efforts. He also mentioned how the government is trying to regain control of critical minerals.
Scott said: “Are we making America the best place for capital in the world? And I don’t think anyone has done that better than President Trump.” That line was the only clear nod to Trump throughout the briefing.
Scott dismisses Fed lawsuit comments as a joke
Scott also had to go home with a different mess from the day before. At a Senate Banking Committee hearing, Democratic Sen. Elizabeth Warren criticized President Trump over reports that he intended to sue Kevin Warsh, his nominee to head the Federal Reserve Board.
What’s the problem? Mr. Trump is said to have been dissatisfied with Mr. Warsh’s failure to lower interest rates.
Warren asked Scott directly. “Can Trump’s Fed nominee, Kevin Warsh, promise right now that he won’t be sued or investigated by the Justice Department if he doesn’t cut interest rates the way Donald Trump wants?”
Scott replied, “That’s up to the president.” The room devolved into crosstalk. The phrase “it’s up to the president” sparked the entire hearing.
The next day on CNBC, Scott tried to spin it. “I tried to explain to Sen. Warren, who doesn’t seem to have a sense of humor, that it was a joke,” he said. However, this time, the phrase “it’s up to the president” was completely omitted.
Instead, Trump said he respects the Fed and its independence. Whether anyone actually believes that is another matter.
The Fed is supposed to be free from political pressure. Presidents have generally stayed away from determining interest rates. But that didn’t stop Trump.
Warren accused her of launching a bogus investigation into current Fed officials Jerome Powell and Lisa Cook. He said Trump has been trying to take control of the central bank “for months.”
With Mr. Warsh set to become the next Fed chairman, he warned that Mr. Trump’s goal is simple: get someone who will do exactly what he wants. “It’s a takeover,” she said.
