Sunday, April 29, 2007

US: We have a weak[-ening] dollar policy.

That's what I'm hearing here.

Reuters: U.S. Treasury's Kimmitt declines dollar comment.


U.S. Treasury Deputy Secretary Robert Kimmitt said he would not comment on the weakness of the U.S. dollar on Saturday after the currency slid to a record low against the euro on Friday.

Kimmitt told reporters that only his boss, U.S. Treasury Secretary Hank Paulson, makes comments on the dollar on behalf of the U.S. Treasury.

"There is only one person who can speak about the dollar... I will leave it there," he said at a conference in Brussels.

The euro pushed over $1.3680, the highest level since the launch of the common European currency in 1999, after a report showed the U.S. economy grew by just 1.3 percent in the first quarter of the year.

"We have made it quite clear to the Chinese that they need to move quicker on their currency, to move to (an) underlying market valuation based on fundamental economic principles," he said during a debate at the conference.

But a weak dollar could put a little juice in our exports as we try to stave off this:

Reuters: Fed's Yellen says U.S. economic downturn possible.


There is the potential for a downturn in the U.S. economy that could have ripple effects around the world, San Francisco Federal Reserve President Janet Yellen said on Saturday.

The U.S. economy grew modestly in the first quarter but should accelerate in the second half of the year, she said in a speech to the American Academy of Arts and Sciences and the American Philosophical Society.

Enumerating the top current risks to stable economic conditions around the world, she said that in the U.S. economy "there is potential for a downturn that could have major spillover effects around the globe." The United States contributes roughly 25 percent to world economic output, she noted.

The U.S. economy expanded at a sluggish 1.3 percent in the first quarter of 2007, the Commerce Department said on Friday, reflecting declines in the housing market and a pickup in inflation. It was the fourth consecutive quarter of sub-par growth in the world's largest economy.