Fed Chair Janet Yellen Demands Japan End Quantitative Easing

Fed Chair Janet Yellen Demands Japan End Quantitative Easing

She understands the BOJ is using monetary policy to devalue the Japanese currency as a strategy to maximize exports and minimize imports. Yellen acted because she believes Japan’s manipulation of its currency had started a trade war with China, a trade war that was about to start a real war.
Last week I reported in “Fed Chair Janet Yellen to Follow Reagan’s Taylor Rule” that Janet Yellen intends to dramatically change U.S. monetary policy by ending the Fed’s failed QE economic stimulus by following the Taylor Rule, preventing the Fed from being sucked into politically motivated currency and balance sheet manipulation. Although my comments seemed controversial at the time, the Japan Times newspaper on April 19th reported that “Experts urge BOJ to draft exit strategy.” The G-20 finance chiefs, led by Yellen, told the BOJ to end QE because its unprecedented volume purchases of “government bonds and risky assets will negatively impact global markets.” This is a dramatic departure from former Fed Chair Bernanke’s support for QE for all.