The $250 bill with Trump's face that threatens the dollar

Trump prints $250 bills: devaluation or monetary policy?

The leak of a $250 bill antiestéticaturing Donald Trump's likeness has sparked a debate about the Federal Reserve's intentions and the future of the dollar. While the administration presents it as a tribute to the 250th anniversary of independence, analysts point to a paradox: printing paper money with a living president breaks a two-century-old tradition and, in passing, feeds the specter of hyperinflation.

From tradition to inflation risk

Historically, the United States has only put deceased figures on its bills. The decision to include Trump —still an active politician— is seen as a gesture of megalomania. But what is truly worrying is the context: the massive issuance of dollars since the pandemic has not stopped, and the global economy is already showing signs of overheating. A high-denomination bill like the $250 one would facilitate opaque transactions and accelerate cash circulation, an additional inflationary pressure.

China, the elephant in the room

Beijing, the largest holder of US debt, is watching the move closely. If the dollar depreciates, its reserves lose value, although Beijing has been diversifying into gold and BRICS agreements for years. What really worries it is that a devaluation would make its exports to the US more expensive, just as the trade war has not cooled down.

The euro, in the crosshairs

The euro-dollar exchange rate has already gone from 1 to 1 in the Biden era to 1 to 0.85 under Trump's shadow. A further depreciation of the dollar could make European imports more expensive, but it would also give oxygen to eurozone exports. It is not a catastrophe, but it is a geopolitical readjustment.

The bill is not yet in circulation, but the mere announcement has been enough for the market to speculate. There are more questions than answers: is it a monetary experiment or a whim of power? The recent history of Venezuela and Zimbabwe shows that printing money without backing leads to ruin. The US is not on that slope, but the slope exists.

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