The United States is not going to intervene in the currency markets. Finance Minister Steven Mnuchin stated in an interview that the situation may change in the long term, but that there is no need to tinker with the value of the dollar at the moment.
President Donald Trump has repeatedly complained that the dollar is too strong against other currencies of trading partners such as China and the European Union. That works to the disadvantage of American exports. He called on the Federal Reserve, the central bank, on several occasions to lower interest rates in order, among other things, to halt the rise in the value of its own currency.
According to the minister, it would currently be more useful if partners from the United States and the Federal Reserve cooperated better. The US previously accused China of currency manipulation after Beijing allowed a substantial fall in the value of the yuan.
Ultra-long bonds are considered
Mnuchin also announced that the US is seriously considering the issue of ultra-long bonds with maturities of 50 and 100 years. The original idea of debt with these maturities dates from 2009. By issuing extremely long-term debts, the Trump government can limit the costs for taxpayers to close a budget deficit that rises sharply every year.
Mnuchin said his renewed interest in long bonds had nothing to do with the fall in interest rates on shorter-term debt. The return on 30-year loans recently dropped below 2 percent for the first time.
The minister also expects to welcome a Chinese trade delegation to the US in the short term. He did not want to say whether a meeting that was previously planned for September will continue.