empty
 
 
03.12.2021 11:30 AM
Yellen calls for tariff cuts to ease price pressures

This image is no longer relevant

US Treasury Secretary Janet Yellen said on Thursday that lowering Trump-era tariffs on imported goods from China could help ease some inflationary pressures, but stressed that it will not be a game changer.

She believes that the 25% tariffs put up on imported Chinese goods are the reason why prices are soaring in the United States.

The previous product-specific exemptions from tariffs on Chinese goods expired in late 2020, but US Trade Representative Katherine Tai launched a new exemption process in early 2020as part of her engagement with Chinese officials on the signed Phase 1 trade agreement.

Yellen also mentioned the elimination process the Biden administration is working on to alleviate price pressures. It included working with ports and private companies to unblock supply chains and keep products flowing to consumers.

"These are the places where tariff cuts need to be made," Yellen said. "I think that could be helpful," she added.

Yellen also noted that personal consumption could make a big contribution in alleviating global imbalances, so that is exactly what they discussed and will continue to discuss.

On currencies, the Treasury secretary said she has no opinion on whether the Federal Reserve should create a digital version of the dollar, but reminded that such a move would require broad consensus between Congress, the US central bank and the White House. She added that the advantages and disadvantages of a central bank digital currency need further study, including its impact on the banking system.

Recently, Fed Governor Lael Brainard called for the faster development of the digital dollar as China and other countries are already developing their own digital currencies.

But Yellen said the issue had not been seriously discussed in the White House, not to mention the Congress still have to weigh it up.

Andrey Shevchenko,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback