Bessent: Dollar Can Stay Strong During Rate Cuts If Economy Holds Up
By
Tyler Durden
Summary
Treasury Secretary Scott Bessent argues that interest rate cuts do not necessarily lead to a weaker dollar, contrary to conventional market wisdom. Speaking at the Economic Club of New York, Bessent explains that if the Fed cuts rates because inflation is declining while the economy remains strong, capital inflows can continue and the dollar can hold its value. The analysis notes that the dollar's trajectory ultimately depends on the underlying reasons for the rate cuts.
Source
Twitter / XBessent: Dollar Can Stay Strong During Rate Cuts If Economy Holds Upzerohedge.comKey quotes
· 2 pulledyou can have a strong dollar when rates are being cut
if the fed is cutting because inflation is falling, while the economy stays strong - capital keeps flowing in and the dollar holds
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