U.S. Treasury Secretary Janet Yellen recently emphasized the importance of rare and well-communicated interventions in the foreign exchange market to stabilize the economy, specifically mentioning she watches currencies like USD, EUR, JPY, and CNY. She highlighted that such interventions should only occur in response to 'excess moves' to manage volatility. Additionally, Yellen criticized China's trade practices, stating they are 'not really playing by the rules,' and expressed concerns over U.S. dependency on China in key industries. She advocated for targeted measures against China rather than broad-based actions and emphasized using tax revenues to reduce the national deficit. Yellen also noted the importance of maintaining economic engagement with China, despite these challenges.
Treasury Secretary Janet Yellen emphasizes rare interventions and effective communication as crucial components for economic stability and growth.
US Tsy Sec. Yellen: If FX Intervention Does Happen, It Should Be For ‘Excess Moves’ - BBG TV - Possible To Intervene When Excess Volatility Occurs - Interventions Should Be Rare, Communicated - Says She Watches USD, EUR, JPY, CNY
US TREASURY SECRETARY YELLEN: INTERVENTIONS SHOULD BE RARE AND COMMUNICATED TO OTHERS.
US TREASURY SECRETARY YELLEN: IF FX INTERVENTION HAPPENS, IT SHOULD BE FOR EXCESS MOVES.
US TREASURY SECRETARY YELLEN: TAX REVENUES SHOULD BE USED TO LOWER THE DEFICIT.
US TREASURY SECRETARY YELLEN: ANY STEPS ON CHINA SHOULD BE TARGETED, AND NOT BROAD-BASED.
US TREASURY SECRETARY YELLEN: WE DO NOT WISH TO DISENGAGE ECONOMICALLY WITH CHINA.
🇺🇸 TREASURY SECRETARY JANET YELLEN: IT IS UNACCEPTABLE TO BE DEPENDENT ON CHINA 🇨🇳 IN KEY INDUSTRIES
US TREASURY SECRETARY YELLEN: IT IS UNACCEPTABLE TO BE DEPENDENT ON CHINA IN KEY INDUSTRIES.
❖ YELLEN: CHINA IS `NOT REALLY PLAYING BY THE RULES' ON TRADE