WASHINGTON – Janet Yellen is expected to confirm the US’s commitment to market-determined exchange rates when she testifies on Capitol Hill on Tuesday, and she will make it clear that the US is not looking for a weaker dollar for competitive advantage, Biden said transition officers who are familiar with her hearing preparation.
The comments would mark a return to the US hands-off approach to the dollar, which President Trump had deviated from by often publicly calling for a lower dollar.
Ms. Yellen, the former chairman of the Federal Reserve, will appear before the Senate Treasury Committee on Tuesday as she considers her nomination as the next secretary to the US Treasury, succeeding Steven Mnuchin.
When asked about the new administration’s dollar policy, officials responsible for Ms. Yellen’s briefing said she is willing to say, “The value of the US dollar and other currencies must be determined by the markets. Markets adjust to reflect variations in economic performance and generally facilitate adjustments in the global economy. “
Ms. Yellen is also expected to say that deliberately targeting exchange rates to gain an unfair advantage in trading is unacceptable.