Saturday, March 21, 2015

Treasury's Lew says a strong dollar is a good thing


Lew this week:

U.S. Treasury Secretary Jack Lew on Friday said a strong U.S. dollar was a "good thing" and reflected strength in the U.S. economy, repeating a long-standing mantra of U.S. administrations.

The report here is correct in that this is all you ever hear a U.S. official say.  When they ask the Fed Chair about it, the Fed Chair always defers the question to the Treasury Dept. the Fed says the value of the USD is a subject for the Treasury Dept.

Now contrast this with this Swiss Central Bank guy this week:

In a Bloomberg Television interview, Swiss National Bank President Thomas Jordan called the Swiss franc “overvalued”...

Demonstrating the different POVs between an official of a nation willing to import vs. an official of a nation that views itself as an exporter.


2 comments:

Dan Lynch said...

The Swiss are much better off than Americans.

Their exports cost them nothing since they are value-added products.

Matt Franko said...

Well Dan I dont disagree but it sounds like the SNB is advocating against that.. rsp