Author: David Lawder
(Reuters) – U.S. Treasury Secretary Janet Yellen said on Saturday she is “probably ready” to serve at the highest levels of government after President Joe Biden’s term ends in January, but is likely to meet again soon with her Chinese counterpart.
When asked at the Texas Tribune Festival in Austin, Texas, if she was “ready” when the new administration takes over in January, or whether she will stay on the job or take on a new administration role, Yellen said: “Probably done, but … we’ll see.”
The comments are mostly because Yellen, 78, has been able to announce her future plans as the presidential race between Vice President Kamala Harris and former President Donald Trump heats up. Yellen has been the first woman to serve as Treasury Secretary, Federal Reserve Chair, and Director of the White House’s National Economic Council.
Yellen said at an event in Austin that she still has a lot to do at the Treasury Department in the coming months, including another likely meeting with Chinese Vice Premier He Lifeng, her counterpart in Beijing, to try to manage the often strained relationship.
The two met in April in Beijing, where Yellen warned China to curb excess industrial capacity ahead of Biden’s decision to raise steep tariffs on Chinese-made electric vehicles, batteries, solar products and semiconductors.
Yellen said she was pleased with the visit to the United States but may also return to China herself, adding: “I think we will have a visit one way or another.”
The Treasury Department’s top economic diplomat, Under Secretary Jay Shambaugh, will lead a delegation to Beijing “very soon” to discuss economic issues. Shambaugh chairs the US-China Economic Task Force, which has made addressing China’s excessive factory production a key issue
Yellen said the next US administration “must prioritize and nurture” the US-China relationship, with discussions taking place at the highest level and among agency staff.
“We have enough disagreements, and without an opportunity to discuss them and put them into context, it’s certainly possible that tensions will grow,” Yellen said. “So this is something that really needs continued attention. I hope it gets it.”
‘FIXED ECONOMY’
Yellen also said the U.S. economy has largely entered a “soft landing” with lower inflation after U.S. employment data for August on Friday showed a slight drop in the unemployment rate despite sluggish hiring.
“When you see job creation slowing down over time, I like that it stabilizes around where it is now, and we have to be careful to make sure that it doesn’t continue to weaken,” Yellen said.
He said consumer spending is “fairly stable” and while there is “less frenzy” in hiring, there are no meaningful layoffs
“I’m attentive now to downside risks on the employment side, but what I think we’re seeing is a good, stable economy,” Yellen said.
(Reporting by David Lawder; Editing by Diane Craft and David Gregorio)
