Janet Yellen, President-elect Joe Biden’s pick to take over the U.S. Treasury, is expected to affirm the United States’ commitment to market-determined foreign exchange rates when she testifies on Capitol Hill on Tuesday, the Wall Street Journal reported on Sunday.
The Treasury secretary nominee, at a Senate confirmation hearing, will make clear the United States does not seek a weaker dollar, the newspaper reported https://on.wsj.com/35NaV8W, citing Biden transition officials familiar with her preparation for the session.
“The value of the U.S. dollar and other currencies should be determined by markets. Markets adjust to reflect variations in economic performance and generally facilitate adjustments in the global economy,” Yellen will say, if asked about the incoming administration’s dollar policy, according to the report.
“The United States doesn’t seek a weaker currency to gain competitive advantage,” she is prepared to say, according to WSJ. “We should oppose attempts by other countries to do so.”
Yellen, who served as head of the U.S. Federal Reserve from 2014 to 2018, is expected to win confirmation in the Senate and is likely to be one of the first Biden cabinet picks to be confirmed.
The return to a traditional posture on the dollar has been expected in the new administration.
A Biden transition team official did not respond to a request for comment about Yellen’s testimony. (Reporting by Kanishka Singh in Bengaluru and Trevor Hunnicutt in Wilmington, Delaware; editing by Jonathan Oatis and Nick Zieminski)