Trump economic adviser Miran “Strong dollar benefits the United States… No plan to induce weakness”

Steven Miran, White House Economic Advisor Defending Strong Dollar (Source: Bloomberg)

Steven Miran, member of the White House Council of Economic Advisers (CEA), recently denied the rumors of inducing a weaker Dollar, stating that the Trump administration will maintain a strong Dollar policy. On the 22nd (local time), Miran appeared on a Bloomberg podcast and drew a line saying, “The claim that a secret currency agreement is being pursued is not true.”

He emphasized, “Authority over monetary policy and exchange rates lies with Treasury Secretary Scott Vessent,” adding, “Secretary Vessent also maintains the stance that a strong Dollar benefits the U.S. economy.” He went on to say, “The status of the Dollar as a global currency is not just an exchange rate but symbolizes America's global dominance.”

Miran, who is from a hedge fund background, gained attention in the past with the 'Miran Report.’ The report mentioned the side effects of a strong Dollar and suggested the need for a devaluation similar to the 1985 Plaza Accord, mentioning the concept of a ‘Mar-a-Lago Accord’ to address the trade deficit. As this report was touted as a blueprint for Trump’s second-term economic policy, there were market speculations that the White House would actually induce a weaker Dollar.

However, Miran explained that “The report was not meant to advocate for a specific policy, and the market has excessively over-interpreted it.” Last month, he had mentioned that “Dollar hegemony could be a burden on U.S. companies and workers,” which is still interpreted as a policy signal.

This statement is seen as an effort to alleviate concerns about a shift to a weaker Dollar that had been spreading among global foreign exchange markets and export-import companies. Miran’s stance suggests that the Trump administration’s basic premise is to maintain a strategy of strong Dollar as a global currency in the future.