WASHINGTON – Janet Yellen is expected to reaffirm U.S. commitment to market-driven exchange rates when she testifies on Capitol Hill on Tuesday, and she will make it clear that the U.S. is not seeking a weaker dollar for competitive advantage, according to Biden transition officials familiar with her hearing prep.
The remarks would represent a return to the US hand-off approach to the dollar, which President Donald Trump had deviated from, often publicly calling for a lower dollar.
Yellen, the former chairman of the Federal Reserve, will appear before the Senate Finance Committee Tuesday as she considers her appointment as the next US Treasury Secretary to succeed Steven Mnuchin.
When asked about the new administration's dollar policy, Yellen briefing officials said it was ready to say, “The value of the US dollar and other currencies should be determined by the markets. Markets adjust to accommodate fluctuations in economic performance and, in general, facilitate adjustments in the world economy. "
Yellen is also expected to say that deliberately aligning exchange rates to gain an unfair advantage in trading is not acceptable
"The United States is not looking for a weaker currency to gain competitive advantage," she said, officials said. "We should oppose attempts by other countries to do this."
An expanded version of this report is posted on WSJ.com.
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