Trade deficits also ballooned under Reagan as a rising dollar sapped America’s competitiveness -- something that economists said could happen again. The U.S. was eventually forced to fashion the 1985 Plaza Accord with its allies to bring the greenback down.
Like the Reagan administration, the Trump team “will have to keep an eye on interest rates and the dollar,” said Snow, who is chairman of Cerberus Capital Management in New York. “Otherwise, they could adversely affect growth.”
This article was provided by Bloomberg News.