U.S. Treasury Secretary Janet Yellen recently hinted at her future plans after President Joe Biden’s term ends in January. During the Texas Tribune Festival in Austin, Texas, Yellen mentioned that she is “probably done” serving at the highest levels of government, but left some room for ambiguity by saying, “we’ll see.” This comment marks a significant moment as it is the closest Yellen has come to announcing her future plans amidst the ongoing presidential race between Vice President Kamala Harris and former president Donald Trump.
Despite the uncertainty about her future plans, Yellen emphasized that she still has a lot of work to do at the Treasury in the coming months. One of the key tasks on her agenda is another likely meeting with her Chinese counterpart, Vice Premier He Lifeng, to address the often tense relationship between the two nations. Yellen previously met with He in April in Beijing, where she warned China about excess industrial capacity. The upcoming discussions are crucial given the recent tariff increases imposed by the Biden administration on Chinese-made products.
Yellen stressed the importance of prioritizing and nurturing the U.S.-China relationship, especially as tensions continue to rise. She highlighted the need for discussions at the highest levels and among agency staff to address the differences between the two nations. The Treasury’s Undersecretary Jay Shambaugh is set to lead a delegation to Beijing soon to discuss economic issues, with a focus on China’s excess factory production. Yellen’s perspective on the U.S.-China relationship underscores the complexity of managing such a critical economic partnership.
In addition to her remarks on international relations, Yellen also provided insights into the U.S. economy. She stated that the economy has largely achieved a “soft landing,” with lower inflation following the release of U.S. August jobs data. Yellen expressed optimism about the current state of the economy, emphasizing that consumer spending remains strong. While there are concerns about a potential slowdown in hiring, Yellen believes that the economy is on a stable trajectory with minimal layoffs.
U.S. Treasury Secretary Janet Yellen’s comments at the Texas Tribune Festival shed light on her future plans, the state of U.S.-China economic relations, and the outlook for the U.S. economy. As she prepares to transition out of her role after President Biden’s term, Yellen’s focus remains on addressing key economic issues and strengthening international partnerships. Her insights provide valuable perspectives on the challenges and opportunities facing the U.S. economy in the coming months.