Head of US National Economic Council Says Strong Dollar Big Hurdle

Count another top economic adviser to President Donald Trump as wary of a strong dollar.

Former Goldman Sachs No. 2. Gary Cohn, now the head of the National Economic Council, identified a stronger dollar as the biggest hurdle to expanding the economy in a Nov. 29 meeting with Trump, the New York Times reported on Saturday, citing people who were briefed on the discussion.

Trump’s views on the dollar have been a source of contention among investors. In late January, Trump charged that both China USDCNY, +0.0291% USDCNH, +0.1224% and Japan USDJPY, +0.49% have worked to devalue their currencies. “They play the money market, they play the devaluation market, and we sit here like a bunch of dummies,” Trump said on Jan. 31, not long after another top adviser, Peter Navarro, told the Financial Times that Germany was benefiting from an artificially weak euro EURUSD, -0.3759%

The report will feed into expectations the Trump administration is looking to weaken the dollar, or at least leave room to blame the currency down the road if the economy stalls.

via MarketWatch

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