"The Chinese move, which had been expected to happen in August, was hailed by the Bush administration as 'good news for the global economy.' Thursday, Treasury Secretary John Snow, who has made several trips to China to push for change, called the new currency program a 'very positive development.' 'We'll continue to closely follow the path of the yuan under this new and reformed regime that they're putting into place,' he said.His remarks were echoed by Fed chairman Alan Greenspan, who termed the Chinese move a 'good start.' On Wednesday, Mr. Greenspan, in testimony before Congress, said it was in China's interest to allow its currency to move higher.
The Chinese move was greeted mostly as positive in Congress, too. Thursday, Sen. Chuck Schumer (D) of New York, sponsor of legislation that would place a 27.5 percent tariff on all Chinese products, called it a good first step, 'albeit a baby step.' 'It is smaller than we had hoped, but, to paraphrase the Chinese philosophers, the trip of a thousand miles can well begin with the first baby step.'"
Helps us and them, read the whole article for possible effects which include possible upshift in long-term interest rates.