WSJ editorial sends Trump clear warning that falling dollar dream may become his nightmare

The conservative Wall Street Journal editorial board warned Wednesday that President Donald Trump is playing with financial fire.

This week, Trump declared a weaker dollar "great," but the Journal warned "he should be careful what he wishes for," as experts have sounded the alarm on what could become a catastrophic miscalculation.

"Many politicians over the years have contemplated a weaker greenback as an economic miracle cure. They often discover that a weak dollar is a liability," the editorial said.

The dollar is hemorrhaging value, plummeting roughly 8% over the past year against a basket of global currencies, while losing a staggering 14% against the euro. Gold has soared past $5,300 an ounce, signaling deepening currency weakness that's destabilizing foreign-exchange markets worldwide.

Other politicians for decades have chased the fantasy that a weaker dollar magically boosts exports and jobs. The Journal said reality tells a different story. Modern economics shows that exchange-rate swings produce only fleeting economic shifts before inflation and deflation erase the gains.

"This should set off alarms for Mr. Trump, since a weak dollar risks inflation he can ill-afford before the November midterms," the Journal warned.

Treasury Secretary Scott Bessent worked to stabilize markets last week, directly contradicting Trump's dollar-weakening cheerleading.

"Credit Treasury Secretary Scott Bessent for understanding this and engaging in moral suasion with foreign-exchange traders last week to help Tokyo stabilize the yen. Credit to him as well for saying Wednesday that the U.S. has always had a 'strong dollar policy,' which countered Mr. Trump’s comments a day earlier. The greenback rallied on the news," the Journal noted.