Could the U.S. Target a Weaker Dollar?

The podcast explores the meaning of the U.S. "strong dollar policy" and its implications for currency intervention and emerging markets. It suggests the traditional definition is intentionally vague, allowing for flexibility in Treasury actions. The podcast highlights the dollar's role in global markets and U.S. foreign policy, including sanctions. The speakers discuss how a weaker dollar could allow EM central banks to ease monetary policy, potentially leading to increased capital inflows despite short-term volatility. They also note that risk premiums have significantly impacted the dollar's value this year, alongside conventional factors like growth expectations and Fed policy.