He doesn't say that, they never say that, anymore than the federal reserve says this is where we want interest rates'. They have to let the market decide that, but they also have to let the market know that policy makers are aware of what's happening and aware of the fact that the exchange rate has an effect on the economy. We benefit from a strong dollar because imports are cheaper and if there are a lot of imports that could help inflation. On the other hand, it makes American stuff a little harder to sell overseas. So it's difficult to know at which moment the Treasury Secretary and other central banks should make a stand like this.
Nobody really knows, if there is such a thing as an appropriate exchange rate.
There's so many things that it affects and are affected by it, investment overseas, U.S. residuals, and U.S. mutual funds, buying and selling stocks overseas, foreign investors buying and selling U.S. government securities, or U.S. equities. All of those are affected by the changes in the exchange rate. By the close today, the dollar bought just under 122.8 yen and 1.656 marks. Emergency mediation talks in Washington began today between American Airlines pilots and the company. If no deal is reached by Friday, American's pilots could walk out for the first time since 1959.