On July 19, 2018, the president of the United States Donald Trump commented that a strong dollar “puts us at a disadvantage,” which marked another example of the U.S. president commenting directly—and sometimes contradictorily—on the country’s currency.

a. What was the likely reaction of the foreign exchange market to Donald Trump’s comment? Explain.

b. Can Donald Trump support the value of the U.S. dollar without the Federal Reserve intervening in the foreign exchange market? If so, how?