United States president Donald Trump has publicly declared a desire to deflate the value of the dollar. I have read in news reports that he has asked aids to find ways to decrease the dollar's exchange rate.

I understand that attempting to influence the Fed to lower interest rates could achieve his goal of a lower exchange rate.

What are other methods a president could undertake to weaken the dollar?

  • $\begingroup$ Do you mean things that a president can do unilaterally (i.e., without Congress), or the full set of things that can be done? They are radically different sets of options. $\endgroup$ – dismalscience May 24 at 3:17

Direct intervention by the U.S. Treasury in the foreign exchange market offers one option for the president. The Treasury would use dollars to buy foreign currency bonds, bidding up the relative prices of foreign currencies and weakening the dollar.

Another option is imposing taxes on the foreign purchase of U.S. assets as a way of weakening the dollar and reducing the trade deficit.

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    $\begingroup$ Both of these answer the question as written, but it’s a bit vague on an important point. Specifically, neither of these options appear to be available to the President alone. Both rely on the Congress to either appropriate funds or levy taxes. $\endgroup$ – dismalscience May 24 at 3:15
  • $\begingroup$ Its seems that the presidents powers are limited in this respect. However, I did find one article that talks about a way the president could weaken the dollar: think.ing.com/articles/… . $\endgroup$ – Mike J May 24 at 13:19
  • $\begingroup$ This suggests that the 1934 Gold Act gives power to the US Treasury and the President to deal in gold and foreign exchange for the purpose of stabilizing the exchange value of the dollar. $\endgroup$ – Mike J May 24 at 13:22
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    $\begingroup$ That’s a good find! $\endgroup$ – dismalscience May 24 at 13:22

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