How A Strong Dollar Can Backfire On The U.S. Economy

In 2022, the U.S. dollar reached its highest level since the early 2000s, but the dollar index has been trending downward as of August 2024. A weaker dollar is not necessarily a bad thing for consumers. A strong dollar may lead to higher prices for American consumers and reduced demand for U.S. exports, which can result in layoffs in key industries. Managing the value of the dollar is a balancing act, which can present challenges for the U.S. president, the Federal Reserve and other policymakers.

Chapters:
0:00 Introduction
1:37 Why the value of the dollar matters
2:56 Why the dollar skyrocketed
6:03 How the president can impact the dollar

Produced by: Charlotte Morabito
Additional Reporting by: Jeff Cox, Gina Francolla
Additional Camera by: Juhohn Lee, Emily Rabbideau
Edited by: Nora Rapapport
Animation: Christina Locopo
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images, Reuters

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How A Strong Dollar Can Backfire On The U.S. Economy