Yellen Pressed to Back Strong Dollar in Reversing Trump-Era Tone
- At Fed, Yellen noted impact of dollar on U.S. current account
- Summers says successor shouldn’t be ‘indifferent’ on dollar
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Janet Yellen once touted the benefits of a weaker greenback for exports, but as the incoming Treasury secretary, she faces pressure to return the U.S. to a “strong-dollar” policy -- and may cause trembles on Wall Street if she doesn’t.
The greenback’s tumble this year -- it’s heading for the second-biggest drop in the past decade -- has already stoked foreign policy makers’ concerns, thanks to the competitive advantage it gives the U.S. Even a tacit endorsement of a weakening dollar could spur tensions with trading partners.