–Treasury Secretary To Testify Before Finance Committee Thursday
–Senators Likely To Ask When Tsy’s Forex Report Will Be Released
By John Shaw
WASHINGTON (MNI) – Treasury Secretary Tim Geithner is set to
testify Thursday before the Senate Finance Committee on the U.S.-China
economic relationship and is certain to face sharp questions about when
China’s currency reforms will occur.
The Treasury secretary will testify at 10 a.m.
Among other things, the Treasury secretary is very likely to be
asked when Treasury’s international economic and foreign exchange report
will be released.
The report was due April 15, but Geithner delayed it, noting that
he had high level meetings coming up with Chinese officials.
Those meetings have occurred and the senators on the panel will
probably press him to explain what concrete accomplishments they
yielded.
In the hearing, there are almost certain to be renewed threats that
Congress will pass currency related legislation directed at China and
its undervalued currency.
Geithner has not testified before a congressional panel this year
in which the primary topic was the U.S.-China economic relationship.
During a hearing last month before a Senate Appropriations
subcommittee, Geithner said the Obama administration continues to
encourage China to “shift” to an economic policy that is more focused on
domestic consumption, less reliant on exports, and open to currency
reforms.
In response to a question at the hearing, Geithner said the
administration wants China to “renew the process of reforming their
exchange rate so we allow the market to play a greater role in
determining the level of that exchange rate.”
Geithner will be given an opportunity to expand on that answer
before the Finance Committee Thursday.
** Market News International Washington Bureau: (202) 371-2121 **
[TOPICS: M$U$$$,MFU$$$,MCU$$$,M$Q$$$,M$$FX$]
