Yellen's Disingenuous Dollar Remarks
Janet Yellen is former Fed Chair and Biden's nominee to be Treasury Secretary. At her confirmation hearing the WSJ reports Yellen to Make Clear U.S. Doesn’t Seek Weak Dollar.
Janet Yellen is expected to affirm the U.S.’s commitment to market-determined exchange rates when she testifies on Capitol Hill Tuesday, and she will make clear the U.S. doesn’t seek a weaker dollar for competitive advantage, according to Biden transition officials familiar with her hearing preparation.
Officials responsible for briefing Ms. Yellen said she 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.”
“The United States doesn’t seek a weaker currency to gain competitive advantage,” she is prepared to say, according to the officials. “We should oppose attempts by other countries to do so.”
Well La Dee Frickin Da
For starters, it is Fed policy and government fiscal policy that sets the tone for the US dollar.
Yellen can make whatever swiss cheese statements she wants but how would a central bank act if it wanted to sink the dollar?
Steps to Weaken a Currency
- Cut interest rates
- Engage in massive QE balance sheet expansion
- Pledge to keep rates low indefinitely
- Pledge to ignore inflation and let it run hot to make up for alleged undershooting
- Encouraging more fiscal stimulus
The Jerome Powell Fed is five for five on doing the very things that would cause the dollar to sink and Yellen supports all of them.
Other counties are doing many of the same things and if they weren't the dollar would be dropping faster.
Regardless, please ignore her disingenuous, cheesy statements because actions speak louder than holes.
Short Tribute to Yellen
If you can stand 30 seconds of ads, this is a funny 5 minute Saturday Night Live skit.
Musical Tribute to 4 Fed Chairs Including Yellen
If you haven't watched my video in entirety, please do so. Thanks.
Open Letter to the Fed
In an open letter to the Fed, I asked Powell a set of questions on inflation expectations, demographics, the Phillips Curve, and the CPI, all areas in which the Fed has made repeated errors.
My questions, sent directly to the Fed are of course unanswered.
Hello Jerome Powell, I ask again, instead of failed bubble-blowing tactics, how about some answers?