#reserve-currency

#reserve-currency

The U.S. dollar's value has fallen 8% over the past year, as the price of gold has skyrocketed, said the WSJ Dollar Index. Some think it is a good thing. President Donald Trump said recently a weaker dollar is great. The idea is a weaker currency boosts exports and employment while a strong currency can throttle an economy. While the idea of a weaker dollar has had supporters over the decades, economists often argue gains can be eaten up by domestic inflation and deflation.

The fall of the dollar, which has lost a fifth of its value against the euro since 2025, is the most tangible reflection of how money, through a series of shocks, has adapted to a worldthat of Donald Trumpwhere the old rules no longer apply. Conversely, the Republican's decision to nominate Kevin Warsh to chair the Fed is yet another sign that the White House regards Wall Street with respect.