U.S. Representative Gary Peters today questioned Federal Reserve Chairman Ben Bernanke on how Japan’s currency manipulation is affecting the U.S. economy and economic recovery at a U.S. House Financial Services Committee hearing. Peters has been vocal in expressing reservations about Trans-Pacific Partnership (TPP) negotiations that could open U.S. markets without requiring fair trade practices from Japan. Peters and more than the majority of House Members sent a bipartisan letter to President Obama urging him to reach an agreement on currency manipulation in TPP.

Peters asked: “Thank you, Mr. Chairman and Chairman Bernanke. Thank you for being here today and for your service. Last week the Bank of Japan announced they were going to maintain their current monetary policy, which as you know includes a significant devaluation of the yen for the purposes of improving the competitiveness of Japanese exports. The yen has fallen in value almost 30 percent compared to the dollar since last year, and Japan, as you also know, is joining the U.S.led transpacific partnership trade talks. I have raised a number of concerns about Japan's entry into the trade talks until they open their markets, particularly to U.S. autos, while they continue to manipulate their currency. This increases my concerns, and it could make our trade deficit even worse. I know in 2011 you expressed concern with China's devaluation of their currency. I'm quoting you saying, right now our concern is that the Chinese currency policy is blocking what might be a more normal recovery process in the global economy, and it is to extent hurting our recovery. Would you please discuss kind of your views on Japan's currency policy and its impact on the economy. And do you believe its currency policy is hurting the economic recovery in the globe right now?”

Watch video of Peters asking how Michigan manufacturers would be affected by Japanese currency manipulation HERE.

Following Peters questioning,The Wall Street Journal noted, “It's always interesting when House lawmakers ask intelligent questions about currency policy and international monetary policy. It's a rare event, but Rep. Gary Peters (D., Mich.) has done just that by pressing Bernanke on currency policies by China and Japan.”

Peters is a Member of the U.S. House Financial Services Committee. He opposes any TPP agreement that does not address currency manipulation or reduces or eliminates tariffs on Japanese autos without opening Japan’s markets.

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