Janet Yellen, U.S. Treasury Secretary, suggested that her time in government may be winding down, saying she’s “probably done” after President Biden’s term ends in January.
Speaking at the Texas Tribune Festival in Austin, Yellen, 78, gave her most direct indication yet about her future plans, though she left the possibility open with, “we’ll see.”
Yellen’s career has been historic, serving as the first woman to lead the Treasury, the Federal Reserve, and the White House National Economic Council.
As the 2024 presidential race between Vice President Kamala Harris and former President Donald Trump heats up, Yellen appears ready to step back from public service.
But her work isn’t over. Yellen noted she still has significant tasks ahead, including a likely meeting with Chinese Vice Premier He Lifeng to manage the often tense U.S.-China relationship.
The two last met in Beijing in April, when Yellen urged China to address excess industrial production before President Biden imposed steep tariffs on Chinese goods, including electric vehicles, solar products, and semiconductors.
While it’s unclear if the next meeting will take place in the U.S. or China, Yellen expects it will happen soon, remarking, “My guess is that we will have, one way or another, a visit.”
In the meantime, Undersecretary Jay Shambaugh, the Treasury’s top economic diplomat, is preparing to lead a delegation to Beijing “very soon” to discuss economic issues, with a focus on China’s overproduction problem.
Shambaugh also heads the U.S.-China economic working group that has made addressing China’s excess factory output a priority.
Yellen stressed that the U.S.-China relationship must be “prioritized and nurtured” by the next administration, warning that without ongoing discussions, tensions could rise.
“We have enough differences, and without a chance to discuss them and put them in context, it’s certainly possible for tensions to rise.
So this is something that requires ongoing attention,” she explained.
On the U.S. economy, Yellen expressed optimism, saying it has mostly achieved a “soft landing” with lower inflation following the release of the August jobs report, which showed a slight dip in the unemployment rate despite slower hiring.
She noted that consumer spending remains “quite solid” and that while there’s “less frenzy” in hiring, layoffs are not significant.
Yellen acknowledged potential downside risks in the job market but remained hopeful. “What I think we’re seeing, and will continue to see, is a good, solid economy,” she said.
As Yellen nears the end of her tenure, her focus remains on stabilizing both the U.S. economy and international relationships, particularly with China.
Her legacy in the business world and government will likely endure, defined by her steadfast commitment to dialogue and economic stability.
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