Yellen “I’m not looking for a weak dollar… Fighting Chinese unfair practices”

Input 2021.01.20 07:20

Joe Biden, former chairman of the Federal Reserve System (Fed), appointed as the first finance minister of the next U.S. administration, said on the 19th (local time) that he would not pursue a’weak dollar’ and that he would respond strongly to foreign exchange rate manipulation. Revealed.

“The United States is not pursuing a weak dollar to gain a competitive advantage, and it should be opposed to any attempt by other countries to do so,” said Nominee Yellen at a hearing on the Senate Financial Committee’s approval.

“I believe in the exchange rate determined by the market,” said Nominee Yellen. “The value of the US dollar and other currencies should be determined by the market.” He then warned that “foreign governments will endeavor to deter any attempts to artificially manipulate the value of currency to gain an advantage in trade,” and warned that “deliberate targeting of exchange rates to gain a commercial advantage is unacceptable.”

The strong dollar keynote is a policy that the current administration of Donald Trump has effectively abolished. President Trump and Finance Minister Stephen Manusin have been pushing for a weak dollar policy for export competitiveness. Minister Manusin once said that “an overly strong dollar hurts the US economy.”

Nominee Yellen also launched an onslaught by pointing China, which has emerged as an American rival, as the country responsible for “terrible human rights violations.”

He said China is using illegal subsidies and dumping, intellectual property theft, and trade barriers to “weakening American companies,” he said. “We must fight China’s unfair and illegal practices.” In addition, he said, “we are ready to use various means” regarding the current trade issue with China.

“China is clearly our most important strategic competitor,” said Yellen. “It is important to cooperate with our allies” in order to compete with China.

Regarding the fiscal stimulus to overcome the novel coronavirus infection (Corona 19), the next government announced a large-scale additional relief package, saying, “It will act greatly.” Earlier, Biden-elect had unveiled an additional stimulus plan worth $1.9 trillion (about 2100 trillion won).

“Neither president-elect and I are proposing such a relief package without consideration of the state debt burden,” said Yellen. “But now with interest rates at a historical low, the smartest thing we can do is to act out loud. “I will.”

“I believe the benefits will far outweigh the cost, especially if we help those who have struggled for a very long time,” he called for the cooperation of Republicans and Congress.

In addition, the nominee Yellon suggested that the Biden government might push for a corporate tax rate hike in the future. He said, “We will guarantee the competitiveness of US companies even if the corporate tax is slightly higher,” CNBC said.

The Trump administration lowered the corporate tax rate from 35% in 2017 to 21%, but Biden pledged to raise it back to 28%.

Nominee Yellen said, “We want to abolish some of the 2017 tax cuts that benefit the highest income brackets and large corporations,” although Biden will not completely abolish the Trump tax cut.
However, that period will be after overcoming the economic recession caused by Corona 19, said Nominee Yellen.

Regarding the discussion on the global digital tax, he said, “We will endeavor to cooperate with other countries and end the disruptive global corporate tax cut competition through discussions on the taxation of the Organization for Economic Cooperation and Development (OECD) on multinational corporations.”

After the hearing on that day, the Democratic Party predicted that the approval bill of nominee Yellen could be passed at the Senate plenary meeting on the 21st.

If the approval is passed, nominee Ylan will become the first female finance minister in US history. He is also the first person to serve as the Chairman of the White House Economic Advisory Committee, Fed Chairman, and Finance Minister.