President Donald Trump said last week that the dollar is “getting too strong” and that he prefers “a low interest rate policy” as the Federal Reserve considers additional rate increases this year.
“It’s very, very hard to compete when you have a strong dollar and other countries are devaluing their currency,” Trump said in an interview with The Wall Street Journal.
A strong dollar makes foreign goods cheaper in the U.S. while domestic products become more expensive abroad. Those patterns can benefit consumers initially, but over the long term they tend to increase trade deficits and curb growth in manufacturing and the overall economy.
Trump’s remarks could further complicate efforts by Republicans in Congress to overhaul the nation’s tax system.