Kevin Warsh – who may be the most qualified candidate for Fed chair in history – may win confirmation in the next few weeks. His highest priority should be to bring inflation down and keep it down. One way to help achieve that is to stop the dollar slide. The dollar has fallen by about 10% since the start of Trump’s second term, relative to other currencies and gold. That may be intentional. Some in the White House believe a too-strong dollar hurts the economy by increasing the trade deficit.

But countries don’t get rich by weakening the buying power of their currency. As the chart below shows, a weaker dollar raises import prices which contributes to inflation.

We favor a strong and stable dollar going forward, and the best the Fed can do to help Trump is to deliver exactly that.