White House knows it needs the Fed to make a dent in the dollar
“Administration officials believe that for any move on the dollar to succeed, the Fed must agree with the policy and clearly communicate its support, according to people familiar with the matter. The Treasury Department and Fed have coordinated the last three U.S. currency interventions, splitting the amount transacted evenly between them in 1998, 2000 and 2011 in order to nudge the dollar’s value.”
USAGOLD note: As we mentioned in a previous post, the Treasury’s ability to sell dollar holdings is limited. For a devaluation policy to have teeth, the Fed must join-in with dollar balances it can tap to sell into the foreign exchange market against various competitive currencies.
Repost from 7-18-2019