U.S. Treasury Secretary draws line in support of strong dollar, walks back "tariffs = inflation" remark

As suspicions grow that President Donald Trump may be deliberately pushing for a weaker dollar, United States Secretary of the Treasury Scott Bessent stressed that he has always supported a strong-dollar policy.
According to British media on the 4th (local time), Bessent made the remarks while testifying before the House Financial Services Committee. He was reiterating comments he gave in an interview with Consumer News and Business Channel (CNBC) on August 28, when he said, "The United States has always had a strong-dollar policy." Asked then whether the United States was intervening in foreign-exchange markets to boost the value of foreign currencies against the dollar, he replied, "Absolutely not. As we reduce the trade deficit, it will naturally lead to a stronger dollar over time."
At the hearing, Bessent also walked back a comment he made to investment partners in January 2024 that "tariffs cause inflation," calling that earlier statement a mistake. As evidence, he pointed to the fact that the Trump administration has imposed multiple tariffs while the U.S. economy has continued to grow and inflation has declined. He likened fears of tariff-driven inflation to a "dog that did not bark," arguing that it was a threat that never actually materialized.
whywani@fnnews.com Hong Chae-wan Reporter