In a recent exclusive interview, Miran emphatically denied any connection between trade negotiations and monetary policy, refuting market speculations about the so-called ‘Mar-a-Lago Accord.’ He clearly stated that the United States continues to adhere to a ‘strong dollar’ policy. Following this statement, the US Dollar Index surged, with a daily increase of 0.5%, reporting 100.1216. As global market attention to the economic policy direction of the Trump administration intensifies, White House Economic Advisor Committee Chairman Stephen Miran, in a recent media interview, clearly stated that the United States continues to adhere to a ‘strong dollar’ policy, refuting external speculations about a brewing ‘weak dollar’ shift or secret currency agreements.
He explicitly denied the existence of secret currency agreements in trade negotiations. Following this statement, the US Dollar Index surged, with a daily increase of 0.5%, reporting 100.1216.Moreover, Miran not only clarified the current exchange rate policy but also responded to external concerns about comprehensive tariffs, economic deficits, and potential recessions, comprehensively elaborating on the Trump administration’s economic strategic thinking. The label of ‘Mar-a-Lago Accord architect’ stems from a 41-page economic policy paper written by Miran last year. This paper became popular in political circles, outlining radical strategies on trade policy and currency intervention, including the widely referred to ‘Mar-a-Lago Accord’ currency arrangement concept.
According to the latest reports, Miran was directly asked about the connection between trade negotiations and monetary policy in a recent Bloomberg ‘Big Take DC’ interview. Miran responded decisively, stating there is no connection and no secret currency agreements exist. He tripled down on his denial: ‘There is none there. There, you know, there, there, there is none.’ Facing the host’s persistent questioning about countries like Japan and South Korea allowing their currencies to appreciate, Miran continued to deny. He emphasized that the United States continues to adhere to a ‘strong dollar’ policy, and Treasury Secretary Scott Bessent is the authoritative figure on dollar policy. Despite repeated denials from Miran and the Treasury, the market remains highly vigilant about possible currency intervention plans, partly due to Trump’s long-standing critical stance on a strong dollar. Facing this persistent skepticism, Miran expressed understanding but also frustration: market participants often fall into certain minor obsessions, requiring us to repeat the same point ten thousand times before they believe it.
The stance on exchange rates has not changed: refuting rumors of the ‘Mar-a-Lago Agreement,’ the ‘strong dollar’ policy is still in effect. Before joining the Trump administration, Navarro had written ‘A User’s Guide to Reconstructing the Global Trading System,’ advocating for the so-called ‘Mar-a-Lago Agreement’ and its benefits, arguing for global markets to revolve more closely around American trade and geopolitical interests. The core content of the agreement not only involves tariff strategies and dollar devaluation but may also include debt restructuring, the establishment of sovereign wealth funds, and the redistribution of defense spending, leading the market to speculate that this is an attempt to artificially devalue the dollar in exchange for better trade conditions. In ‘A User’s Guide to Reconstructing the Global Trading System,’ Navarro’s central idea is that the dollar, as the dominant reserve currency, represents a ‘burden,’ advocating for the weakening of the dollar and binding U. S. debt holders to arrangements that fund defense spending in exchange for American security guarantees. However, Navarro denied on Thursday that the U.S. government is planning any form of currency agreement, and the U.S. continues to adhere to a strong dollar policy. ‘We are not secretly advancing such matters; Treasury Secretary Bessent (Scott Bessent) has repeatedly made it clear that we still adhere to a strong dollar policy, which has never changed. ‘ However, President Trump himself had expressed a desire for a weaker dollar during his first term, and his first Treasury Secretary Mnuchin (Steven Mnuchin) also stated that a weak dollar is beneficial for exports. When asked about the stance within the U.S. government, Navarro responded: ‘A strong dollar is not just about the level of exchange rates; it is more about the stability of the dollar system and the structural advantages brought by the dollar as the world’s dominant currency. ‘ He emphasized that as an economic advisor, he can only reiterate the Treasury Secretary’s stance, ‘A strong dollar is beneficial for the United States.’ Following Navarro’s statement, the U.S. dollar index rose by 0.5% to 100.1216, then slightly fell back to 99.04. Tariff strategies cause fluctuations, but Navarro says ‘this is an expected pain.’ When discussing the new round of comprehensive tariff policies introduced on April 2nd, Navarro acknowledged that these policies indeed caused a significant impact on the market, but this was expected. He said that although the market has fluctuated sharply in the short term, this reaction ‘is natural and will ease on its own.’ Previously, some retail businesses expressed concerns to the White House, stating that supply chain restrictions lead to empty shelves and consumers will face upward pressure on prices. Trump also acknowledged that there will be short-term pain in exchange for long-term structural improvements. In response, Navarro said that the current short-term fluctuations do not mean that the economy is heading towards a recession but are a ‘time lag effect’ during policy adjustments.
Companies may defer investments or hiring, but this merely shifts from one quarter to another without causing a recession.” He also noted that the United States is currently engaged in trade negotiations with over 20 countries and regions, with more than 100 expressing interest in participating. “We anticipate the conclusion of multiple agreements in the coming months. Once a fair trade order is established, U.S. exports are expected to significantly increase, directly aiding in reducing the trade deficit.” Milan stressed that the market should not equate financial market reactions with the real economy. “Financial markets are more reliant on the international environment, whereas the real economy is more influenced by domestic policies.”
When discussing fiscal deficits, Milan criticized the Biden administration for “leaving a mess” while defending the current fiscal path. He stated that deficits should occur during times of genuine need for fiscal stimulus, such as wars or severe crises like the COVID-19 pandemic, rather than expanding arbitrarily during stable economic periods. Regarding the Republican tax reform bill currently being advanced, Milan acknowledged that it might increase the deficit in the short term, but emphasized the long-term growth dividends it would bring. “Many assessments of deficits focus solely on Congressional Budget Office (CBO) scores, which is too mechanical. Tariff revenues, regulatory reforms, energy policies are not accounted for, yet they have a significant fiscal impact.” Milan argued that the pros and cons of tax policy should not be measured by static assessments alone. He said, “It is unfair to consider tax reform as the sole cause of worsening deficits. ” He also added that before the tax reform bill is implemented, everything is a forecast, and it is impossible to provide precise figures for GDP growth in the fourth quarter or the following year. Despite facing market volatility and structural challenges, Milan remains confident about the future. He stated that the Trump administration’s core economic strategy remains: “promoting tax reform, deregulation, and energy independence.” “Reforms take time. We have a complete process: a comment period, a review period, and regulatory drafts; we are doing all of these. We have made significant progress, and with a few more years, we can get things done.” Risk Warning and Disclaimer: The market carries risks, and investment should be approached with caution. This article does not constitute personal investment advice and does not take into account individual users’ specific investment objectives, financial conditions, or needs. Users should consider whether any opinions, views, or conclusions in this article align with their particular circumstances. Investment decisions based on this article are at one’s own risk.