Oh, what was Kudlow’s religion again?
– Larry Kudlow: “I Would Buy The Dollar And Sell Gold”:
Hours after accepting President Trump’s offer to become the new director of the President’s National Economic Council, CNBC personality Larry Kudlow returned to his old stomping ground Wednesday afternoon to answer a series of softball questions lazily lobbed by his (soon-to-be-former) colleagues.
About mid-way through the interview, Kudlow was asked about Trump’s views on the dollar. Followers of currency markets will remember the burst of volatility that Treasury Secretary Steven Mnuchin accidentally unleashed when he appeared to disavow the US’s longstanding commitment to its “strong dollar” policy.
His response? “I have no reason to believe the president doesn’t support a strong, stable dollar.”
The dollar clawed back losses in the afternoon after subdued inflation data, comments from Mario Draghi and the continuing fallout from the abrupt firing of Rex Tillerson forced it lower earlier in the session. It’s unclear how much of an impact Kudlow’s comments had on the dollar. CNBC noted that, typically, commenting on the dollar is typically delegated to the Treasury Secretary.
“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 added. “That creates confidence at home.”
He later drove his point home by saying he would buy the dollar and sell gold.
So far that’s not been a great trade, Larry…
Throughout the interview, Kudlow adhered to the Trump policy playbook.
Read moreAND NOW: Larry Kudlow: “I Would Buy The Dollar And Sell Gold”