 |
| US Treasury Secretary-nominated Janet Yellen © AFP=News1 |
The global financial market is again drawing attention from the nominee of Finance Minister Janet Yellen, who served as the head of the US central bank. On the 19th (local time), one day before the inauguration of US President-elect Joe Biden, Yellon, former chairman of the Federal Reserve System (Fed), will hold a Senate approval hearing.
At this meeting, attention is focused on the details of the dollar policy, public relations, regulatory and tax, and fiscal stimulus proposals to be addressed by the nominee of Finance Minister Yellen.
According to a statement by the Wall Street Journal (WSJ) cited by President Biden’s Transition Committee, he is likely to make it clear that he is not seeking a weak dollar. Yellen said at the confirmation hearing that he would confirm that he “is not seeking a weak dollar for export competitiveness,” the WSJ said.
President Donald Trump’s Treasury Secretary Steve Manusin has often made comments that seem to favor a weak dollar, and the Yellon nominee is now under “real” strong dollar rebuilding pressure, Bloomberg said. But as Fed chairman, Bloomberg pointed out, Yellen emphasized the negative impact of the strong dollar.
As for public relations, trade negotiations are not in the hands of the Minister of Finance, but the nominee for Yellen can show the Biden regime’s overall stance toward China. It is unclear whether the Biden administration will regularly resume strategic dialogue with China and what role Ylan will play in public dialogue, Bloomberg said.
Yellon’s remarks regarding the 1.5 trillion won fiscal stimulus proposal by Biden-elect last week are also noteworthy. According to a preliminary response obtained by Bloomberg, Yellen will say at hearings that low interest rates mean “time to act big.”
In a preliminary reply, he said, “Long before the novel coronavirus infection (Corona 19) hit the United States, we were living in a K-shaped economy,” he said. “While rich people accumulate more wealth, workers lag behind, especially people of color. Even more so,” he stressed.
In addition, as the Ministry of Finance plays a key role in setting financial regulations and tax policies, Yellen can make a remark at the hearing. Since Yellen also represents the Financial Stability Supervisory Commission, which monitors financial risks, he is likely to be asked about his supervisory authority. Bloomberg added that climate change may be part of this mandate.