Last week, the Treasury Department released its semi-annual report on exchange rates. The report stopped short of accusing China of being a “currency manipulator”. Now, Secretary John Snow is under fire from Congress. Finding China’s currency to be intentionally overvalued against the USD most likely would have triggered talks between the US and China and possibly led to economic sanctions. By not making such a claim, the Treasury has invited criticism from Sens. Charles Schumer and Lindsey Graham, who are sponsoring legislation that would impose high tariffs on China should it fail to adjust its currency. Most economists believe that the Chinese yuan is overvalued by anywhere between 15% to 40% against the dollar. The Washington Post reports:

Sen. Charles Schumer, D-N.Y., said Treasury’s report last week that declined to brand China as a currency manipulator was “a technical and legalistic dodge.” “China is a manipulator,” Schumer said at a Senate Banking Committee hearing, “and the administration is afraid to say so.”

Read more: Sens. Criticize Treasury on China Currency