U.S. Federal Reserve Chair Janet Yellen on Friday cut her agency’s domestic reserves by $1 billion to $2.1 trillion and cut back on the import of dollars and other foreign currencies.
The move will reduce the value of the U.s. dollar by about 0.8% as it does not factor in the impact of any monetary tightening in the United States, the Fed said in a statement.
The Fed said the move was necessary to reduce the impact on the U and other central banks in the global economy and avoid an overheating of the global currency market.
Yellen, who took office in January, said in the statement that the Fed was “committed to maintaining our accommodative monetary policy, which is necessary for the health of the economic recovery and to avoid a further deterioration of global economic conditions.”
She said that the policy actions are part of our “long-term, permanent policy of maintaining accommodative policies, while responding to adverse developments and external shocks.”
The Fed also said that it will not continue to sell U.k. government debt, a policy that has already begun to be withdrawn from markets.
Yellows Trump: “We can’t afford to do that” President Donald Trump said Friday that the U .s. has no choice but to buy more American debt and he suggested the Us. should not buy U.K. government bonds.
The president was reacting to a report Friday by the U