Yellen to Affirm Commitment to Market-Determined Dollar: WSJ

(Bloomberg) -- Janet Yellen is expected to affirm the U.S.’s commitment to market-determined dollar value and give assurances that the U.S. won’t seek a weaker dollar for competitive trade advantage, the Wall Street Journal reported, citing Biden transition officials familiar with her preparation for her confirmation hearing.

Yellen, former chair of the Federal Reserve, is set to testify to the Senate Finance Committee on Tuesday. She’s expected to win the confirmation as Treasury secretary easily in the Senate.

If asked about exchange rates policy, Yellen is prepared to say, “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,” according to the newspaper.

“The United States doesn’t seek a weaker currency to gain competitive advantage,” she’s prepared to say, the officials said. “We should oppose attempts by other countries to do so.”