

“As a strong, large, independent, growing economy, it
doesn’t make sense for that country to run a monetary policy
exchange-rate regime that effectively lets the Federal Reserve
set interest rates for their economy,” Geithner said at an
American Society of News Editors conference in Washington
yesterday. “That’s why I think -- why I’m confident that
they’re going to move.”
President at a Washington meeting to move to a “more market-
oriented” exchange rate. China’s official Xinhua News Agency
cited President Hu as saying the country wouldn’t yield to
outside “pressure.”
The Obama administration “will be very forceful and
aggressive in making sure we are promoting changes” in China,
Geithner said yesterday.
U.S. lawmakers say the yuan peg, at about 6.83 to one
dollar since July 2008, gives Chinese exporters an unfair
advantage, and they have urged the Obama administration to
increase pressure on China to change the policy. The U.S. ran a
$227 billion trade deficit with China last year.
A Bloomberg News survey of 19 analysts forecasts China may
allow the yuan to appreciate by June 30 to help curb inflation.
“It’s not at all a game changer, absolutely, but
politically that’s the maximum that China can do,” Roubini, who
predicted the global financial crisis, said in New York. The
move would “allow at least the U.S. to signal there is some
movement and prevent the U.S. from declaring China as a currency
manipulator.”