New Trump Advisor Says Buy the Dollar — Not Gold

- March 15th, 2018

Larry Kudlow has yet to start his new position as the White House’s chief economic advisor, but he’s already got plenty of feedback on the economy.

Larry Kudlow is set to make his way into the White House as the new chief economic advisor, replacing Gary Cohn, and he’s wasted no time in bringing his opinion on the US economy to the table.

Shortly after the news was announced, Kudlow gave his thoughts on a variety of financial topics, including the US dollar, which he said he wants to see grow stronger.

“A great country needs a strong currency, [Trump] knows that,” Kudlow said in an interview with CNBC. “I have no reason to believe that President Trump opposes a sound and stable dollar.”

Is it a good time to buy gold stocks?


Learn to profit from gold's low price this year!


Give me my free report!

He elaborated by saying he’d like to see the dollar “a wee bit stronger than it is currently,” adding that “stability is the key.”

“I’m not saying the dollar has to go up 30 percent, I’m just saying let the rest of the world know that we are going to keep the world’s international reserve currency steady,” Kudlow said. “That creates confidence at home.”

Despite his brand-new membership within the White House, Kudlow held nothing back when talking about the US Federal Reserve, a subject typically shied away from by officials to help preserve the Fed’s independence.

He commented that the central bank should make it a point to not “overdo it” with regards to hiking interest rates. “Growth is not inflationary. Just let it rip, for heaven’s sake,” Kudlow said.

What caught the attention of analysts, however, was Kudlow’s advice to investors — he said he “would buy King Dollar and sell gold.” The precious metal saw an influence on Thursday from Kudlow’s statement, dropping $10.50 to US$1,315.10 an ounce by 3:00 p.m. EST.

The Fed is scheduled to meet next week from March 20 to 21. Jerome Powell, the newly instated chair, rattled investors earlier this month with comments suggesting there could be more interest rate hikes than expected this year. US inflation data released this week has helped to allay those concerns.

Higher interest rates tend to be positive for the dollar, but can weigh on non-interest-bearing assets like precious metals.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.

Is it a good time to buy gold stocks?


Learn to profit from gold's low price this year!


Give me my free report!

Get the latest Gold Investing stock information

Get the latest information about companies associated with Gold Investing Delivered directly to your inbox.

Gold Investing

Select All
Select None

By selecting company or companies above, you are giving consent to receive email from those companies. And remember you can unsubscribe at any time

2 responses to “New Trump Advisor Says Buy the Dollar — Not Gold

Leave a Reply

Your email address will not be published. Required fields are marked *