WASHINGTON, Dec. 11 (UPI) -- The head of the Federal Reserve said Thursday floating the yuan will not lead to more jobs in the United States.
Fed Chairman Alan Greenspan also argued China's trade imbalance with the United States was not unacceptably skewed. His wariness of the Chinese central bank floating the yuan at all costs contradicts the White House position, which has called for the currency to be traded freely on the foreign exchange market as soon as possible.
Many policymakers and voters alike have argued it was the artificially low value of the yuan that was leading to the exodus of U.S. jobs to China, but Greenspan argued even if the Chinese were to float their currency, it "would be unlikely to have much, if any, effect on aggregate employment in the United States."
