Trump’s New Administration Would Support Strong Dollar, Economic Advisor Says

As a seasoned researcher with extensive experience in financial markets and a keen interest in U.S. politics, I find myself intrigued by Scott Bessent’s recent statements to Financial Times regarding a potential Trump administration’s stance on currency policy and digital assets.

If Donald Trump were to lead a future U.S. administration, it is expected that they would continue the longstanding U.S. policy of maintaining a robust dollar value. This stance was expressed by Trump’s economic advisor, Scott Bessent, during an interview with Financial Times on Sunday. His comments aimed to alleviate concerns about potential dollar devaluation under Trump’s presidency.

As Election Day draws near on November 5th, Democrat Kamala Harris appears to be falling behind her opponent, Republican Donald Trump, in the Polymarket’s prediction markets. Early this year, Trump and his running mate, JD Vance, advocated for a weaker U.S. dollar to stimulate manufacturing growth.

Instead of saying it, let me rephrase: Bessent informed FT that he does not anticipate Trump will intentionally weaken the US dollar, but rather maintain it as a “reserve currency.” To clarify, devaluation signifies the deliberate lowering of a country’s currency value to increase exports.

“The reserve currency can go up and down based on the market. I believe that if you have good economic policies, you’re naturally going to have a strong dollar,” Bessent added, cautioning he is not speaking for Trump.

To put it another way, a possible Trump presidency might bring benefits to digital assets; however, this could also mean a strong U.S. dollar, which typically limits the growth of riskier assets that are priced in U.S. dollars, such as cryptocurrencies.

Originating from South Carolina, Bessent established Key Square Group – a global macro investment firm initially funded by George Soros. He gained recognition for his significant earnings by wagering against the Japanese yen during his tenure as Chief Investment Officer at Soros’ family office between 2011 and 2015.

As a crypto investor, I can’t help but be intrigued by Bessent, whom Trump has lauded as one of the sharpest minds on Wall Street, admired by all, and possessing an appealing charm. Previously a shining star at Soros, it’s rumored that Bessent is being seriously considered for the prestigious role of Treasury Secretary in Trump’s administration.

Additionally, Bessent supported Trump’s proposal for broad-based tariffs as high as 20%, levied on all incoming goods, arguing that such “aggressive stances” would soften over negotiations with foreign trade allies.

“Ultimately, he supports open trade.” His phrase “Escalate to de-escalate” can be understood as starting with a conflict or problem, and then working towards resolving it.

In the interview, Bessent stated that Trump possesses business acumen and has a good grasp of economic matters. Simultaneously, he criticized Kamala Harris for lacking economic understanding, and described her running mate Tim Walz as being equally economically uninformed.