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WASHINGTON – Janet Yellen is expected to affirm the United States’ commitment to market-determined exchange rates when she testifies on Capitol Hill on Tuesday, and she will clarify that the United States is not looking for a weaker dollar for a competitive advantage, according to Biden transition officials familiar with his hearing preparation.
These remarks would represent a return to the hands-off US approach to the dollar, which President Trump had departed from by often publicly calling for a lower dollar.
Former Federal Reserve Chairman Ms Yellen is due to appear before the Senate Finance Committee on Tuesday because she is considering her appointment as the next US Treasury Secretary, succeeding Steven Mnuchin.
When asked about the new administration’s dollar policy, officials responsible for briefing Ms. Yellen said she was prepared to say, “The value of the US dollar and other currencies should be determined.” by the markets. Markets adjust to reflect changes in economic performance and generally facilitate adjustments in the global economy. “
Ms Yellen should also say that intentional targeting of exchange rates to gain an unfair advantage in trade is unacceptable.
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