In a recent address at the Council on Foreign Relations, Treasury Secretary Janet L. Yellen outlined the Biden-Harris Administration's international economic policy. The speech focused on how this policy aligns with domestic goals to benefit American businesses and families.
Yellen highlighted the administration's achievements in driving economic recovery, noting strong GDP growth, low unemployment rates, and reduced inflation. She emphasized efforts to lower costs for American families through "modern supply-side economics," which aims to expand production capacity while reducing inequality.
The administration has also prioritized stabilizing international relationships and working multilaterally. "American businesses and families have a tremendous amount to gain from our connections to the global economy and from U.S. global economic leadership," Yellen stated.
Yellen warned against isolationist policies such as high tariffs, arguing they would raise prices for Americans and harm competitiveness. She stressed that tackling global challenges like climate change, pandemics, and conflicts requires collaboration.
On trade and investment, Yellen noted that over 41 million American jobs depend on trade, with foreign direct investment contributing significantly to U.S. employment. She discussed initiatives like the CHIPS and Science Act to strengthen manufacturing and supply chains through strategic global engagement.
Addressing global challenges is crucial for America's future, according to Yellen. She mentioned efforts like launching the Pandemic Fund post-COVID-19 and increasing climate financing through multilateral development banks.
Regarding China, Yellen called for a balanced economic relationship based on fair practices while addressing issues like industrial overcapacity that threaten American firms' viability.
Yellen also spoke about Russia's war on Ukraine, highlighting strategic global engagement as essential in opposing threats to international order. "This sustained, global action allows us to accomplish what we could not alone," she said.
Concluding her remarks, Yellen underscored the importance of continued strategic international economic policy for both American prosperity and global security: "America’s economic well-being depends on the world’s."
