Yellen ‘Probably Done’ When Biden’s Term Ends, May Meet Chinese Counterpart Soon – Reuters

By David Lawder

U.S. Treasury Secretary Janet Yellen stated on Saturday that she is “probably done” serving in high-level governmental positions when President Joe Biden’s term concludes in January. However, she anticipates another meeting soon with her Chinese counterpart.

During a discussion at the Texas Tribune Festival in Austin, Texas, Yellen was asked if she would continue in her current role or take on a new position in a future administration. She responded, “Probably done, but … we’ll see.”

Yellen’s remarks mark her most definitive comments regarding her future as the presidential race heats up between Vice President Kamala Harris and former President Donald Trump. At 78, she has made history as the first woman to hold the positions of Treasury Secretary, Federal Reserve Chair, and Director of the White House National Economic Council.

While addressing the audience, Yellen emphasized that she has significant work ahead at the Treasury in the coming months, which likely includes another meeting with Chinese Vice Premier He Lifeng. This meeting aims to address the often strained U.S.-China relationship.

The two previously met in April in Beijing, where Yellen urged China to manage its excess industrial capacity, especially in light of Biden’s impending tariff increases on various Chinese products, including electric vehicles and semiconductors.

Yellen mentioned her openness to a visit to the U.S., as well as the possibility of returning to China. She predicted, “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, will soon lead a delegation to Beijing to discuss economic matters. Shambaugh heads a U.S.-China economic working group focused on addressing China’s surplus production capacity.

Yellen expressed that the next U.S. administration needs to prioritize and nurture the U.S.-China relationship through discussions at the highest levels and among staff members. She acknowledged the potential for rising tensions without opportunities for open dialogue, stating, “We have enough differences, and without a chance to discuss them and put them in context, it’s certainly possible for tensions to rise.”

On the state of the economy, Yellen indicated that the U.S. has largely achieved a “soft landing,” with inflation decreasing. Following the release of August jobs data, which showed a slight drop in the unemployment rate despite slower hiring, she noted, “When you see the pace of job creation diminishing over time, what I love to see is that it stabilizes roughly where it is now, and we have to be careful to make sure that it’s not going to weaken further.”

Yellen also remarked on the strength of consumer spending, describing it as “quite solid.” Although she indicated there is “less frenzy” in hiring, she observed that there are no significant layoffs occurring. She expressed her cautious optimism for the economy, stating, “I’m attentive to downside risks now on the employment side, but what I think we’re seeing, we will continue to see, is a good, solid economy.”