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Speaker of the House John Boehner called the Senate bill to force the Yuan to rise against the dollar “beyond” what Congress should be doing, adding it would be “pretty dangerous.”On Monday the Senate voted to begin debate on the measure 79-19, which would allow the U.S. to impose tariffs on goods exported by countries found to be devaluing their currency.
President Barack Obama has yet to weigh in on the bill — which moved forward in the Senate with broad bipartisan support — though privately sources say the administration opposed it. Chinese government officials have threatened a trade war if the bill is passed and the tariffs are implemented.
“I’m concerned about the Chinese currency situation. There’s been an awful lot of work done over the last seven or eight years to try to bring its valuation up,” Boehner told reporters. “But I think it’s pretty dangerous to be moving legislation through the United States Congress forcing someone to deal with the value of their currency. This is well beyond, I think, what the Congress ought to be doing. While I have concerns about how the Chinese have dealt with their currency, I’m not sure this is the way to fix it.”
Boehner coming out against the Currency Exchange Rate Oversight Reform Act of 2011 saves Obama from having to oppose it himself — against the will of many in his party.
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