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FT News Briefing

Swamp Notes: Why Trump may want a weaker dollar

Mar 15, 2025
This engaging discussion features Gillian Tett, a seasoned economics commentator, and Katie Martin, a financial market expert. They delve into the recent decline of the U.S. dollar and how market volatility, influenced by unpredictable policies, may be a strategic move by Trump's team. Together, they explore the implications of a weaker dollar, potential benefits for the U.S. economy, and how investor uncertainty reshapes financial behavior. They also touch on intriguing global financial stories, connecting local events to broader economic trends.
17:36

Podcast summary created with Snipd AI

Quick takeaways

  • The ongoing decline of the U.S. dollar reflects growing uncertainty among investors attributed to Trump's unpredictable tariff policies and market volatility.
  • Some economic advisors suggest intentionally weakening the dollar could help U.S. manufacturing by enhancing export competitiveness, despite potential risks to international relations.

Deep dives

The Volatility of the Dollar and Markets

The significant decline of the U.S. dollar has raised concerns about its future as the world's reserve currency amidst current market volatility. Traditionally, a nervous investor tends to buy dollar assets and government bonds during market instability; however, recent trends show that this behavior is not consistent. The stock market has faced considerable corrections, and alongside it, the dollar has weakened, indicating a shift in investor confidence. Analysts suggest that constant fluctuations in Trump's tariff policies contribute to uncertainty, leading to a lack of traditional safe-haven buying behavior.

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