China surprised international markets Tuesday by raising key interest rates for the first time in three years. The move sparked a worldwide sell-off on worries that it could cause the Chinese economy to slow down.
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The U.S. will not weaken the dollar in order to boost its exports, Treasury Secretary Timothy Geithner promised. “It is not going to happen in this country,” Geithner told Silicon Valley business leaders of devaluing the dollar…
The U.S. trade deficit unexpectedly jumped to $46.3 billion in August, as the nation’s deficit with China surged to a record $28 billion. Oil prices were the other key culprit as the petroleum deficit surged 5.7%.
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Treasury Secretary Timothy Geithner said the U.S. favors a “gradual, but still significant” appreciation of the yuan.
Geithner said the U.S. would prefer China let market forces drive up the value of the currency, The Wall Street Journal said. Geithner noted that the yuan had strengthened by about 2.5% in six weeks.
“What we want to do is to maximize the incentives they have to let…
Continue reading Geithner Says U.S. Favors Significant Yuan Appreciation
Geithner Says U.S. Favors Significant Yuan Appreciation originally appeared on DailyFinance on Wed, 13 Oct 2010 09:03:00.
Investors take note: Despite the calls for order, national policymakers are dealing with an increasingly haphazard scenario loaded with counterproductive results and unintended consequences. The result could be a slide toward p…