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CORRECTED-Feldstein says China could act on yuan if US quiet

Published 03/22/2010, 10:44 PM

(Corrects thirds paragraph to say Feldstein speaking of dollar strength vs euro, not euro strength vs dollar)

HONG KONG, March 23 (Reuters) - China will have more scope to allow the yuan to appreciate if the U.S. government stays quiet, a Harvard University economist who also advises the U.S. government on economic policy said on Tuesday.

The comment was made by Martin Feldstein, a member of U.S. President Barack Obama's economic recovery advisory board.

Feldstein added that the strength of the the U.S. dollar against the euro was only temporary. The euro remained the only major alternative to the dollar, he said.

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