At a Senate Banking Committee hearing on Wednesday, Sen. John Kennedy (R-LA) asked Chair of the Federal Reserve Jerome Powell about the weakness of the dollar.
00:00Explain to me why we have seen in the last few months weakness in the dollar.
00:08That's a great question. Of course, the Treasury Department has the job of, is responsible for the role of the dollar.
00:15So I just, I don't know. I think I would go back to the thought that markets have been digesting an unusually challenging set of circumstances.
00:27And, you know, have reacted the way they've reacted. The dollar is kind of stabilized now.
00:34In fact, it's moved back up here in the last couple of weeks a bit.
00:39And, you know, there are plenty of people who are still writing that the dollar is still overvalued.
00:43We don't have a view on that, of course, but I wouldn't really have an opinion on exactly why it is where it is.
00:50Well, you know, clearly there's a lot of geopolitical risk right now, which would lead one to conclude, all things being equal, that people would be flocking to the dollar and it would be stronger.
01:05Well, you have seen some of that here in the last few days.
01:08But, again, I don't really have an official view I'd like to share on that.
01:15I think there are possible explanations, multiple possible explanations.
01:20Again, one of which is that people still, some people still feel the dollar is highly valued.
