March 24th, 2010
06:48 PM ET
5 years ago

Geithner: China letting Fed set yuan's path

Treasury Secretary Tim Geithner said Wednesday that China's undervalued currency makes the nation dependent on U.S. monetary policy.
Treasury Secretary Tim Geithner said Wednesday that China's undervalued currency makes the nation dependent on U.S. monetary policy.

Washington (CNNMoney.com) - In what may be the bluntest assessment by a high-ranking White House official of China's exchange rate policy, Treasury Secretary Tim Geithner said Wednesday that China's undervalued currency makes the nation dependent on U.S. monetary policy.

"I think China will be better; they're stronger as an independent country if they're not running an exchange rate policy that, essentially, has the Federal Reserve of the United States setting monetary policy in China," Geithner told CNN's John King in an interview taped for "John King, USA." The interview will air at 7 p.m. ET.

Geithner added that he believes that over time the Chinese will appreciate their currency.

"I think many of them understand and they'll come to decide that it's in their interest, as they move," Geithner said. "I think it's quite likely they move over time."

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Filed under: China • Federal Reserve • JKUSA • John King USA • Popular Posts • Tim Geithner
soundoff (8 Responses)
  1. Oh Really?

    If this is the case, I think in a few months may be the time to start increasing interest rates.

    March 24, 2010 04:50 pm at 4:50 pm |
  2. David H

    I think this guy is out of his mind!

    March 24, 2010 04:54 pm at 4:54 pm |
  3. jojomcgee

    Geithner is a bigger idiot than Barack Hussien Obama. This proves it.

    March 24, 2010 05:13 pm at 5:13 pm |
  4. Sniffit

    "Meaningless. The prez can't impose statuatory law; everyone knows this. It's just more stagecraft."

    Hey genius. The Excecutive Branch is in charge of ENFORCING the laws, so guess what that means? That's right, the Executive Branch is the very first entity to interpret what the language in a piece of legislation actually means, because you have to do that first before you attempt to enforce it. Executive Orders like this one are used to set policy regarding how the law will be interpreted in attempting to enforce it. This Order effectively means that the Executive Branch cannot in any way intepret the HCR bill to allow federal funding of abortions in a manner inconsistent with or greater than already existing laws preventing federal funding of abortions...laws which the GOP had no problem with (gee, wonder why that is). In other words, this is a very substantive move by Obama. As a result, your comment that this is merely "stagecraft" is abject nonsense brought on by the conservative pityparty sour grapes parade. You guys need to grow up, read more and THEN voice INFORMED opinions.

    March 24, 2010 05:59 pm at 5:59 pm |
  5. Gene

    For the record....

    Contrary to the impression that CNN is trying to promulgate. Yes, I would like to see the Healthcare Reform Bill repaled, but...

    I am NOT violent, racist, homophobic, etc.

    And, most of us, the majority of the American people, are opposed to this bill and are just like me.

    WE JUST DISAGREE WITH THIS LEGISLATION. And we will work within the rule of law to have it repealed.

    Don't Republicans get threats?

    March 24, 2010 06:06 pm at 6:06 pm |
  6. Dean

    I would feel better if the Fed was not setting our monetary policy. They have ruined the dollar.

    March 24, 2010 08:01 pm at 8:01 pm |
  7. blinded1

    Translation:

    The Treasury Dept is not going to lable China as 'currency manipulator' in its April 15 report to th Capitol.

    March 24, 2010 08:30 pm at 8:30 pm |
  8. that1guy

    I don't think that "nyah, nyah, you wimps" qualifies as a productive currency policy comment, much less a statement. Frankly, I'd like to see a scaled import tariff pegged to an objective determination of the true value of the yuan vs. the dollar which would vary with the corrected exchange rate. This would offset China's pegging policy.

    March 24, 2010 08:35 pm at 8:35 pm |