Sec. Yellen: I Can Imagine Situations Where Markets Are So Disorderly that Currency Intervention Is Called For

EXCERPT:

YELLEN: "So at the beginning of our administration, I tried to articulate what the U.S. dollar policy is. And what I said is that we believe in a market-based currency, that the value of the dollar should be determined in markets, that we should run a strong macroeconomic policy consistent with macroeconomic stability, price stability, and full employment in the United States, and allow the dollar to adjust as necessary to accomplish those goals. So of course I watch the value of the dollar, but it's been a long time since the United States has intervened in currency markets. Can imagine situations where markets are so disorderly that intervention is called for. But as a normal matter, the dollar is determined by markets. And interest rate differentials globally have been important drivers of that."