The designated new US Treasury Secretary Janet Yellen does not seek to devalue the dollar. “The value of the US dollar and other currencies should be determined by the markets,” quoted the Wall Street Journal on Sunday from prepared statements by the former head of the Fed in the Senate. “The United States is not looking for a weaker currency to gain competitive advantage.” The US should oppose attempts by other countries to do so.
The dollar also came under devaluation pressure last year due to the corona crisis. This is particularly advantageous for US exporters, as it makes their goods and services cheaper elsewhere. At the same time, however, imports are also becoming more expensive, which can lead to higher inflation and weaken the purchasing power of consumers.
Yellen is expected to be confirmed by the Senate as one of the first ministers proposed by future President Joe Biden. She is considered a proven financial expert and headed the most powerful central bank in the world from 2014 to 2018. Biden will be sworn in as the new president and successor to Donald Trump this Wednesday.