Janet Yellen Secretary of the Treasury | Twitter Website
As Prepared for Delivery
"Thank you to Italy for its leadership throughout this year and to Minister Giorgetti and his team for hosting us this week. And thank you to all of you for being here."
As we gather, America’s strong economic performance continues to serve as a key engine for resilient global economic performance. The Biden Administration has driven a historically fast and inclusive economic recovery and is now focused on driving progress on our medium- and long-term economic agenda. U.S. GDP growth over the past year has been strong. Our labor market is healthy. And inflation has come down significantly from its peak, though we continue to take action to address the high costs of key household expenses. In brief, the U.S. economy is in far better shape than many predicted this time last year, and I believe continued progress on inflation will benefit both the American people and the global economy.
That said, we know that the recovery has been uneven across our countries and that there are risks to the global outlook. This week, the G7 will discuss financial stability, macroeconomic policies, and how to prevent geopolitical issues from derailing economic growth. The United States will seek to drive progress on three priority areas: sustainable development, ongoing conflicts, and China’s industrial overcapacity.
Sustainable Development
"Let me first address sustainable development." As we look at a world with geopolitical uncertainty, it is essential that G7 countries work constructively with low- and middle-income countries and focus on how best to support them. The United States continued advancing the MDB evolution agenda at the Spring Meetings last month, including by joining ten other countries to announce new resources that could enable up to $70 billion in additional lending over 10 years to support projects addressing global challenges like climate change. Our recent national security supplemental included $250 million for the IDA Crisis Response Window, showcasing our commitment to supporting the poorest countries when they face grave challenges. And earlier this month, the United States and other donors concluded the $5 billion record 14th replenishment of the Asian Development Fund, which will incentivize addressing global and regional public goods and enable increased support to small island developing states in the Pacific and to the people of Afghanistan and Myanmar.
Debt is also top of mind. For low-income countries, external debt service has risen to a level not seen in nearly two decades. We must continue making progress in particular debt restructuring cases; we must more intensively use all tools available so that countries making right policy reforms have access sustained financing flows from official bilateral creditors private actors international financial institutions These flows are critical enabling investments needed achieve development climate goals build stronger global economy.
"I look forward maintaining momentum this week glad Italy invited several emerging market countries these meetings."
Conflicts
Turning ongoing conflicts meet week price cap policy continues restrict Russian revenues while helping keep global energy markets stable imposed coordinated sanctions further diminish Russia’s revenues restrict access technology material United States sanctioning nearly 300 individuals entities just month Putin spends more senseless war draws resources away other productive sectors structural weaknesses building up Russian economy.
"But so long as Putin continues wage war more action needed." The U.S press firms financial institutions China other countries cease their support Russia’s military-industrial base through supplying key inputs like optics semiconductors efforts make sure financial institutions aware increased risks sanctions since President Biden’s December Executive Order meaningful impact disrupting Russian military-industrial supply chains Even Putin’s spokesperson acknowledged new difficulties Also use every tool disposal disrupt Iran North Korea supplying lethal aid Russia.
This week continue close coordination partners G7 across European Union discuss additional action including further restrict Russia’s access critical goods support military-industrial base use international financial system procure them Aid Ukraine remains crucial—both enabling Ukraine’s continued resistance protecting partners allies’ national security heartened U.S Congress approved over $60 billion much needed military economic humanitarian support Ukraine last month commend EU progress moving forward its 50 billion euro Ukraine Facility Targeting Russia’s military capacity supporting Ukraine together working hold back Russia bolster Ukraine Securing Ukraine's position medium- long-term requires unlocking value immobilized Russian sovereign assets Support EU decision utilize windfall profits these assets but must also continue collective work ambitious options considering all relevant risks acting together teams extensively engaged recent weeks committed working colleagues present concrete options Leaders look toward Apulia Summit Failure take additional action option—not Ukraine's future not stability own economies security peoples engaged battle wills Putin resolute united sending message cannot simply wait out coalition Middle East need continue use economic tools counter Iranian regime financing terrorist actors including Hizballah Houthis Iran-aligned proxy groups Iraq Syria recently worked some G7 members strengthen coordinated efforts taking multiple joint sanctions actions urge other G7 members join effort send strong signal Iran proxies severe consequences role perpetrating violence destabilizing region call firms financial institutions cease their support Iran through supply transshipment critical components advanced weapons programs Focused devastating humanitarian situation Gaza increasingly dire economic conditions both Gaza West Bank issued public guidance conducted outreach humanitarian groups make sure U.S sanctions stand way legitimate humanitarian assistance Palestinians Gaza team engaged directly Israeli government urge action bolster Palestinian economy Israel's own security Particularly concerned Israel threats take action lead Palestinian banks cut off Israeli correspondent banks banking channels critical processing transactions enable almost $8 billion year imports Israel including electricity water fuel food facilitating almost $2 billion year exports Palestinian livelihoods depend Israel withholding revenues collects behalf Palestinian Authority threatens economic stability West Bank Partners need everything possible increase humanitarian assistance Palestinians Gaza curtail violence West Bank stabilize West Bank's economy China's Overcapacity Unfair Trade Practices Finally focused China's industrial overcapacity communicated directly Chinese counterparts China macroeconomic imbalances aggravated Chinese direct indirect government support manufacturing sector currently leading production industries significantly exceeds only China's domestic demand also what global market bear Without new policy direction including lift Chinese demand instead boosting supply can lead large volumes exports depressed prices Not bilateral issue between U.S China German Chancellor Scholz raised issue April trip China President Macron President von der Leyen emphasized need balanced trade relations China earlier month collectively recognized need protect workers businesses unfair practices Overcapacity threatens viability firms around world including emerging markets poses challenge China's growth President Biden made clear take action stand up American workers companies last week United States announced strategic targeted steps key sectors respond unfair trade practices PRC result Section 301 review EU other countries already using authorities investigate consider remedies China actions regard electric vehicles many emerging market launched anti-dumping investigations range sectors Week key opportunity discuss how China's macroeconomic imbalances industrial overcapacity affect economies responses approaches raise concerns directly China Critical growing numbers identified concern present clear united front I'll now take questions
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