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What might a Trump presidency mean for the US dollar?

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Bloomberg Mercury Jan 6 18:10 · 21.8k Views

What might a Donald Trump presidency mean for the US dollar? Kristine Aquino explains

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Transcript

  • 00:00 What might a Donald Trump presidency mean for the US dollar?
  • 00:03 More than half of the 553 respondents in the Bloomberg survey say that Trump's policies will boost the dollar.
  • 00:09 Many pointed to the incoming president's preference for tariffs, which are expected to keep inflation elevated.
  • 00:15 That could limit room for the Federal Reserve to cut interest rates,
  • 00:18 and that's a combination that typically lifts the currency.
  • 00:21 Yet 27% of survey participants cited the same aggressive trade policy as a reason to expect a weaker currency.
  • 00:27 They say that while tariffs could give the dollar a short term boosts,
  • 00:31 they could also ultimately harm the US economy
  • 00:34 and require more rate cuts.
  • 00:36 That's a combination that is usually negative for the dollar.
  • 00:39 While the Trump effect has yet to materialize,
  • 00:41 it's becoming increasingly clear that the dollar and currency markets will have a lot to digest as trade policy takes shape.