During her address at the Council on Foreign Relations, U.S. Treasury Secretary Janet L. Yellen outlined the Biden-Harris Administration's international economic policy and its alignment with domestic economic objectives.
According to a press release, Yellen underscored the importance of global collaboration, which she believes is essential for fostering prosperity for American businesses and families. She opened her remarks by reflecting on the administration's domestic achievements and noted that the U.S. economy is experiencing strong growth, low unemployment rates, and significant declines in inflation.
“We’ve seen record small business growth and a historic boom in factory construction led by facilities producing semiconductors and electric vehicle batteries,” Yellen said.
As the administration prepares for the upcoming IMF and World Bank Annual Meetings, Yellen reiterated the importance of maintaining strong international economic ties and highlighted the interdependence of the U.S. economy with the global market.
“We need to promote policies, investments, and institutions that support global growth,” Yellen said.
Yellen expressed concern over protectionist measures and warned that such policies would not only raise costs for consumers but would also undermine U.S. competitiveness on the global stage. She warned that such policies would not only raise costs for consumers but would also undermine U.S. competitiveness on the global stage.
“Calls for walling America off with high tariffs on friends and competitors alike or by treating even our closest allies as transactional partners are deeply misguided,” Yellen said.
Addressing supply chain challenges, Yellen described the administration's initiatives to strengthen American manufacturing and supply chains through global partnerships and underscored the need for strategic engagement with trusted allies.
“We’re leveraging the CHIPS and Science Act to pursue partnerships to diversify the global semiconductor ecosystem,”Yellen said. “And last May, we took another step forward by launching the Nairobi-Washington Vision to accelerate investments toward clean and resilient economies and supply chains.”
Yellen also emphasized the administration's commitment to tackling global challenges, including pandemics and climate change and advocated for increased climate financing and support for developing countries to enhance global resilience.
“The destruction we’ve seen this hurricane season in the United States is the latest reminder of the need for bold action,” Yellen said.
On the topic of national security, Yellen highlighted the necessity of addressing unfair trade practices, particularly concerning China and stressed that a coordinated international response is crucial to counter challenges posed by China’s economic policies.
“The European Union and emerging market countries have also taken or are exploring actions,” Yellen said. “I’ve raised concerns about overcapacity frequently and directly with my Chinese counterparts, including on multiple trips to China, and with America’s allies and partners, who share these concerns and are also responding.”
Yellen concluded by asserting that America’s economic well-being is intrinsically linked to global economic health.
“I am convinced that there is simply no other path forward than... strategic international economic policy that delivers for American families and businesses,” Yellen said.
