Bessent Confident in U.S. Dollar Stability Amid Policy Strengths

U.S. Treasury Secretary Scott Bessent affirms a strong dollar policy, dismissing intervention in currency markets. His remarks boosted the dollar's value, demonstrating confidence in Trump's economic policies. Despite recent dollar pressure, Bessent expects long-term strength from policies, dismissing inflation concerns.

In an interview with CNBC, U.S. Treasury Secretary Scott Bessent asserted the country's commitment to a strong dollar policy, denying any engagement in supporting the Japanese yen within currency markets. He clarified that Washington's focus remains on establishing robust economic fundamentals.

Bessent's statements came amid recent fluctuations in the dollar's value, illustrating confidence in policies under the Trump administration, such as tax and deregulation measures. These policies, according to Bessent, make the U.S. more attractive to investors and contribute to reducing trade deficits, likely strengthening the dollar over time.

Despite recent market pressures and concerns over U.S. interest rates and fiscal deficits, Bessent expressed a lack of concern about inflation. He predicted economic growth without resultant inflation, citing productivity and wage growth as not necessarily leading to higher inflation, with potential declines in rents possibly contributing to future reductions in measured inflation.

(With inputs from agencies.)