The Obama Administration is Not Getting Tough on Currency

By Matthew McMullan
Sep 03 2015 |
No, the Schumer currency language is still not welcome at the White House. | Photo by Peter Stevens

Let’s clear up some confusion.

Today, White House Press Secretary Josh Earnest faced a room full of reporters and said the Obama administration would welcome a currency enforcement bill. I saw this news on Twitter, and then I passed out.

When I came to, I thought about it: This would be a major about face for the White House. Back during the debates about currency enforcement that sprung up amongst the wider debate over “fast track” authority for the upcoming Trans-Pacific Partnership (TPP), the Obama administration was adamantly opposed to adding enforceable rules on currency to the trade deal. It also wasn’t very keen on legislation that Sen. Chuck Schumer proposed, which would make currency an actionable offense around which trade cases could be built.

The Obama administration is not going to back a currency rule in the TPP. But that Schumer legislation passed the Senate in a larger customs enforcement bill by a wide margin. Was the White House pulling a 180 and throwing its support behind it?

No. They’re probably not gonna be doing that. Here’s how we explained it on our Twitter account:

Meanwhile, Treasury Secretary Jack Lew insists he’s keeping the pressure up on China over its currency manipulation. That’s certainly one way to deal with the problem. A more effective solution would be to back the Schumer language.