Treasury Secretary Janet Yellen spoke from a new conference Brazil, where she is attending a meeting with central bankers and finance ministers from Group of 20 nations.
Yellen was answering questions re Trump’s comments in a Bloomberg interview on a “big currency problem” with the dollar.
Trump said he hears from manufacturers that “nobody wants to buy our product because it’s too expensive”and that other countries try to keep their currencies “weak all the time”
Yellen reiterated that the US is in agreement with Group of Seven nations backing market-set FX rates. FX interventions should only take place in situations of excess volatility, and in consultation with partners. (Thats a really ‘in a nutshell’ view, its all about extreme departure from ‘fundamentals, excess speculation and such).
More from Yellen:
“Over the last several years, the United States has had tight monetary policy,” “That’s induced capital inflows that have strengthened the dollar — that’s really something to be expected” “We believe that’s how the system should work.”
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On what I said about Japan above, that’s my take, maybe she was giving Suzuki the side-eye, I don’t know.
This article was written by Eamonn Sheridan at www.forexlive.com.
