Treasury Secretary Janet Yellen is wrapping up her term with a drop in the microphone, publicly crediting President Joe Biden’s economic policies with putting the United States on stronger footing.
to talk Speaking before the New York Society for Business Economics, Janet praised the decisions made under Biden’s supervision as transformative. According to her, the US economy is outperforming its global peers and defying gloomy expectations.
She said: “All political options involve trade-offs, but the Biden administration made sound decisions that put the economy on a strong path.” Janet stood firm, backing her claim with data and results, not fluff.
While Gannett acknowledged that inflation has upset ordinary Americans after the pandemic, she said the $1.9 trillion American Rescue Plan prevented the United States from descending into chaos. “The strong labor market and rapid decline in unemployment rates have helped us avoid ‘labor market scarring,’” she said.
This phrase, a favorite of economists, refers to the long-term damage that occurs when people remain unemployed for too long. Under Biden’s policies, this scenario did not happen.
Labor market flexibility in the Biden era
Janet, a labor economist, has always been obsessed with jobs. She noted that the administration’s focus on recruitment has paid off significantly. The unemployment rate fell rapidly, allowing people to return to work without suffering long-term scars that could cripple future economic output.
She wasn’t blind to criticism either. Critics of the American Rescue Plan said it stoked inflation, but Gannett shrugged that off, saying the plan’s benefits dwarfed its drawbacks. Her argument? The economy rebounded more quickly, workers remained engaged, and the fundamentals of the labor market remained strong.
It wasn’t just about jobs. The plan was designed to help Americans who were on the brink, and Janet made it clear that leaving them to fend for themselves was not an option. She stressed that the rapid recovery showed how important it was to act decisively.
Global Challenges: China, Russia, and Economic Warfare
Janet didn’t just deal with domestic issues. Her role requires her to navigate an absolute minefield of international crises. From tense trade relations with China to the Russian invasion of Ukraine, she has been in the middle of it all.
Regarding China, Gannett has entered into the chaos left by Trump’s trade wars and other incidents, including the spy balloon saga, which has only added fuel to the fire. Despite the chaos, she managed to re-establish contact with Beijing, calling it “dangerous” to allow relations with the world’s second-largest economy to deteriorate further.
“Obviously we don’t agree with China on a lot of things, and we have our grievances,” Janet said, without trying to calm the tension. Its efforts included high-risk trips to China, where it made some progress.
On one trip, senior Chinese officials brought her a book she had written about the American economy to sign. But while diplomacy helped reopen lines of communication, Janet did not hold back in criticizing China’s manufacturing subsidies, which she said hurt American companies.
Then there was Russia. Janet led the US-led sanctions campaign after Russia’s invasion of Ukraine. These sanctions hit Moscow hard, reducing oil revenues and freezing assets. However, despite the huge financial losses, these measures were unable to completely cripple the Russian economy or its military ambitions.
However, Janet saw value in multilateral efforts. She worked to engage allies, saying: “We have worked hard to rebuild our relationships with our allies and strive to achieve goals jointly to the maximum extent.”
One particularly tense moment came when a cyberattack hit the US branch of China’s largest bank, Industrial and Commercial Bank of China Limited. The attack, which has been traced to a Russian criminal gang, threatened to disrupt global financial markets.
Janet acted quickly, assuring Chinese officials that the United States was not behind the crisis and that it was working to resolve the situation before it got out of control.
Biden’s economic vision and Janet’s legacy
Biden was not shy about framing his policies as a departure from his predecessor. Speaking recently, he said the United States is “stronger than it was four years ago,” citing economic stability and resilience after what he called “the worst attack on our democracy since the Civil War.”
Janet shares these sentiments, noting the importance of multilateral strategies in addressing global and local challenges. However, she acknowledged that progress made under Biden could be in jeopardy if Trump wins another term.
Trump has already pledged to increase tariffs on China and reduce US support for Ukraine. Janet’s departure raises questions about what comes next. Her potential successor, Scott Besant, has expressed support for her policies, including the “buddy-support” strategy.
This approach aims to align US supply chains with its allies and create a stronger economic and security network. Besant has described her doctrine as “the most important speech of her distinguished career.”
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