During a recent appearance at the Texas Tribune Festival in Austin, Texas, U.S. Treasury Secretary Janet Yellen hinted that she is likely to step away from serving at the highest levels of government after President Joe Biden’s term ends in January. When asked if she would continue in her current role or take on a new administration role, Yellen responded by saying that she is “probably done” but left the door slightly ajar by adding, “we’ll see.” This statement is perhaps the closest Yellen has come to revealing her future plans as the ongoing presidential race between Vice President Kamala Harris and rival Donald Trump gains momentum.
Despite her potential exit from government service, Yellen noted that she still has a significant amount of work to accomplish at the Treasury in the coming months. Specifically, she mentioned another probable meeting with her Chinese counterpart, Vice Premier He Lifeng, to address the frequently tense relationship between the United States and China. This upcoming meeting follows a previous encounter in Beijing in April, where Yellen cautioned China to curb excess industrial capacity just before President Biden’s decision to impose substantial tariff hikes on various Chinese-manufactured products.
In an effort to further economic discussions with China, Undersecretary Jay Shambaugh will lead a delegation to Beijing in the near future to engage in talks about economic matters. Shambaugh is in charge of a U.S.-China economic working group that has identified addressing China’s surplus factory production as a key issue. Yellen emphasized the importance of prioritizing and nurturing the U.S.-China relationship, calling for discussions at both high levels and among agency staff to maintain balance and prevent tensions from escalating.
In addition to discussing her future plans and diplomatic efforts with China, Secretary Yellen also provided insights into the current state of the U.S. economy. She stated that the economy is experiencing a “soft landing” with lower inflation levels, despite a slight decline in the unemployment rate in August. Yellen expressed optimism about the economy, citing stable job creation rates and solid consumer spending. While she acknowledged the possibility of downside risks on the employment front, she remained confident that the country is on track for continued economic stability.
Secretary Janet Yellen’s potential departure from government service marks the end of an era as she has served in various high-level positions, making significant contributions to economic policy and diplomacy. Her focus on maintaining a constructive relationship with China and ensuring the stability of the U.S. economy reflects her commitment to addressing critical issues facing the nation and the global economy. As Yellen prepares for the next chapter in her career, her legacy as a trailblazing leader in finance and economics is sure to endure for years to come.