Geithner Refrains From Labeling China a Manipulator

[Coventina]

Source: Bloomberg

April 16 (Bloomberg) -- U.S. Treasury Secretary Timothy Geithner refrained from labeling China a manipulator of the yuan’s exchange rate, backtracking from an assertion he made during his confirmation hearings in January.

In its first semiannual report on foreign-exchange policies since Geithner became secretary, the Treasury said yesterday that while the yuan remains “undervalued,” no country “met the standards” for illegal currency manipulation in the second half of 2008.

The conclusion clashes with Geithner’s January 22 statement to a Senate panel that President Barack Obama “believes that China is manipulating its currency.” The shift may anger U.S. lawmakers, companies and trade unions who have sought measures to punish nations perceived to have undervalued exchange rates.

“Clearly the Treasury has made more of a political decision than an economic decision here,” Republican Senator Lindsey Graham of South Carolina said in a Bloomberg Television interview. “The truth is the Chinese manipulate their currency.”


Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=abwfzaq6aJUI&refer=home

[brentspeak]

1. .

[skoalyman]

2. ding ding ding

[w4rma]

3. Too bad. That was just about the only thing he's said that is right. (nt)