"Economic Advisor" Aito: Trump will appoint a new Federal Reserve Chairman to defend the status of the US dollar

A top economic adviser to Donald Trump has refuted the idea that if Trump is re-elected, he will weaken the US dollar or cut trade. He insists that Trump wants the US to maintain its status as the world's reserve currency and will use tariffs as a negotiating strategy.

Hedge fund manager Scott Bessent, 62, who made a fortune by successfully betting on the yen and pound while working for George Soros, has become one of Trump's key advisers in recent years in economics and finance. If Trump returns to the White House, Bessent is often seen as a possible candidate for Treasury Secretary.

Trump and his running mate JD Vance have called for weakening the US dollar to boost American exports, which would increase the cost for American consumers to buy foreign goods.

However, in an interview, Bessent stated that he expects a possible new Trump administration to support a strong dollar policy, consistent with US policy for decades, and not intentionally seek to devalue the dollar.

Bessent said, "Trump 'firmly supports the dollar as a reserve currency, which may fluctuate based on market dynamics, but I believe that with good economic policies, naturally there will be a strong dollar."

Bessent warned that he does not speak for Trump, but he also defended Trump's commitment to imposing broad tariffs on imported goods, including tariffs as high as 20%. These are positions of 'maximum pressure' that may be softened in negotiations with trading partners.

Bessent said, "I think he is ultimately a free trader. This is a strategy of de-escalation through escalation (trade tensions)."

He also added that Trump will appoint a new Fed chairman - Powell's term ends in 2026 - but he will not interfere with its independence. Some are concerned that if Trump wins a second term, he may politicize the Fed.

"He will express his views," Bessent said. "I think the difference with Trump is that he is a businessman - he understands economics."

Based in South Carolina, Bessent founded the global macro investment firm Key Square Group, which was established with $2 billion from Soros.

Bessent stated that he has not faced Republican scrutiny for working for liberal Soros.

Bessent said, "Soros is very good at understanding how complex systems accelerate or collapse, which is also my strength. Unfortunately, he brought this skill into the political arena."

He referred to Democratic candidate Harris as an "economic illiterate" and called her running mate, Waltz, a "double illiterate."

He refuted a recent study on Trump's tariffs, which suggested that Trump's commitments would double the national debt compared to Harris's plan. Bessent called this study by the Committee for a Responsible Federal Budget (CRFB) "terrible." He also pointed out that the CRFB did not fully consider how tax cuts promote growth. Bessent also criticized studies that suggest Trump's policies will lead to soaring inflation, pointing out the situation of rising prices during the Biden administration.

He said, "It's a crazy idea - to think that Trump would cause inflation is absurd, we experienced the most serious inflation in 40 years during the Biden-Harris era. Everything she talks about will lead to inflation."

Bessent suggested that Trump could cut spending by repealing Biden's "Inflation Reduction Act," referring to the act as "the doomsday machine of deficits."