Donald Trump’s economic advisers are reportedly debating ways to devalue the US dollar if he wins a second term in the White House, according to Politico.
Three former Trump administration officials told Politico that the idea is being discussed by Trump’s potential Treasury Secretary Robert Lighthizer, who was Trump’s trade chief behind the former president’s trade war with China.
Lighthizer now serves as the trade chief at the America First Policy Institute.
“Currency revaluation is likely to be a priority for some members of a potential second Trump administration, mainly because of the viewpoint that [an overvalued dollar] contributes to the trade deficit,” a former Trump official said.
Devaluing the dollar could boost U.S. exports and potentially reduce the trade deficit. But it would reignite inflation and threaten the dollar’s role as the world reserve currency, which would undermine U.S. sanctions on countries like Russia.
Politico noted that devaluing the dollar would face opposition from Wall Street and its allies because a weaker dollar could make assets based on the currency less valuable.
A former Trump administration official says that he would only pursue currency devaluation in a potential second term if Lighthizer is selected as Treasury Secretary.
