US Mnuchin, who said a weak dollar is good for trade, now says "Strong dollar helps the economy"

Former U.S. Treasury Secretary Steven Mnuchin stated on the 7th (local time) that a strong dollar would be beneficial to the U.S. economy. He also expressed concerns about the large fiscal deficit, emphasizing that whoever wins the next presidential election must address this issue.

[Image source=AP Yonhap News]

On the 7th (local time), Mnuchin appeared on Bloomberg TV and was asked whether a strong dollar is positive for the U.S. economy. He responded, "It's a good thing." He said, "The dollar is the world's reserve currency," adding, "This allows us to operate with a large deficit." The dollar's value has surged about 13% against the Japanese yen over the past year.

This statement contrasts with Mnuchin's previous stance during the Donald Trump administration, when he repeatedly supported a weak dollar citing the U.S. trade deficit. Earlier, he said, "A strong dollar is good in some ways, but it makes competition more difficult," and "A weak dollar is good for U.S. trade and opportunities." Given that Treasury secretaries' comments on exchange rate levels are generally taboo, these remarks were highly scrutinized at the time.

Mnuchin also emphasized that regardless of who wins the upcoming November election, they must work with Congress to resolve the fiscal deficit issue. According to the Congressional Budget Office, the deficit is projected to expand from $1.58 trillion to $2.56 trillion by 2034. He stated, "This deficit will become a boomerang and a real problem," urging, "I recommend establishing a bipartisan commission to begin reviewing this issue now."

He also expressed concern that sanctions on Russian and Iranian crude oil are not being properly enforced. He called it a "clear violation" and insisted, "Sanctions must be implemented." Furthermore, he added that seriously considering the use of frozen Russian assets for Ukraine's reconstruction is necessary.

Mnuchin, who leads the private investment firm Liberty Strategic Capital, recently gained attention as a rescuer for New York Community Bank (NYCB), which is facing a credit crisis. He has also expressed interest in acquiring TikTok, which the U.S. Congress is pushing for forced divestiture.

This content was produced with the assistance of AI translation services.