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I think his point is that since the Fed has already made cuts to head off any economic weakness, they now have ample room to worry about the value of the dollar without having to simultaneously fight off an impending recession.

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I agree but he specifically mentioned lowering interest rates further as a way to strengthen the dollar. I'm fairly certain that he's implying that the U.S. economy is growing "below potential" and that a stronger U.S. economy would eventually attract more foreign investment and thus strengthen the value of the US dollar because the demand for U.S. assets would increase substantially.