Yellen to affirm commitment to market-determined dollar… WSJ

Bloomberg/Yueqi Yang

“Janet Yellen is expected to affirm the U.S.’s commitment to market-determined dollar value and give assurances that the U.S. won’t seek a weaker dollar for competitive trade advantage, the Wall Street Journal reported, citing Biden transition officials familiar with her preparation for her confirmation hearing.”

USAGOLD note:  A watered-down version of Rubin’s strong dollar policy that suits the times and perhaps the reality in which we find ourselves ……That said, the strong dollar policy was never much of a policy but more an attempt to jawbone the market from selling off the greenback. Since Rubin, uttered that famous refrain in 1995, the dollar has declined in purchasing power 41% and the price of gold has gone from $375 to $1840 and a recent visit over the $2000 mark.

Gold and the Purchasing Power of the Dollar
(1995 to present)overlay chart showing gold and the purchasing power of the dollar 1995 to present
Sources:  St. Louis Federal Reserve, BLS, ICE Benchmark Administration

Repost from 1-19-2021

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