Besant: The concept of a strong dollar is not simply about the exchange rate level.

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Gold Financial reports that on June 24th, U.S. Treasury Secretary Scott Bessent distinguished between maintaining a strong dollar policy and merely focusing on exchange rates. "When people talk about a strong dollar, I don't think it's the Bloomberg dollar index," Bessent said in response to a question after delivering a speech at the New York Economic Club on Tuesday evening. "I think it means we are taking various measures to lay the foundation to make people willing to come to this country, whether it's tax certainty, regulatory certainty, or energy certainty." He stated that a strong dollar is not contradictory to a robust manufacturing sector. "Germany used to be an industrial powerhouse; they relied on a strong currency," which made Germany more efficient, more innovative, and more productive. Regarding the dollar's decline since early last year: "I wouldn't wake up and think, great, this is good for the economy. I think it's just price swings on the screen." He indicated that currency devaluation in low-cost manufacturing countries might be unfavorable for the U.S.; "I often think, it's not necessarily because the dollar is strong. Maybe—like Southeast Asian countries, because they manage their currencies the most—but it could also just be other currencies weakening." (Sina Finance)
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