Treasury candidate Janet Yellen says the US will not be aiming for a weaker greenback
© Reuters. President-elect Joe Biden announces members of his policy team in Wilmington, Delaware
(Reuters) – Janet Yellen, the election of President-elect Joe Biden to assume the U.S. Treasury Department, is expected to confirm the United States' commitment to marketed exchange rates when she testifies on Capitol Hill on Tuesday, the Wall Street Journal reported on Sunday .
The Treasury candidate will clarify at a Senate confirmation hearing that the United States is not aiming for a weaker dollar, the newspaper reported at https://on.wsj.com/35NaV8W, quoting Biden transition officials who were preparing to go ahead the session are familiar.
"The value of the US dollar and other currencies should be determined by the markets. The markets adjust to reflect fluctuations in economic performance and generally facilitate adjustments in the world economy," Yellen will say when following the incoming government's dollar policy report is asked.
"The United States is not looking for a weaker currency to gain competitive advantage," she said, according to the WSJ. "We should oppose attempts by other countries to do this."
An official from the Biden transition team did not respond to a request for comment on Yellen's testimony. The Democrat Biden will take office on Wednesday.
The policy outlined by Yellen would be a return to a traditional stance on the dollar that was expected by the new administration. The outgoing Republican President Donald Trump railed against the strength of the dollar for years, saying it gave other countries a competitive advantage over the United States.
Trump's thinking seemed to be changing last year. In May he said it was “a great time to have a strong dollar. … Everyone wants to be in the dollar because we kept it strong. I kept it strong. "
After hitting an annual high in March last year, the US currency continued to post its worst annual performance since 2017, negatively impacted by low interest rates that made it less attractive to high-yield investors.
Yellen, who served as head of the U.S. Federal Reserve from 2014 to 2018, is expected to receive Senate approval and is likely to be one of the first Biden Cabinet picks to be approved.
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