Treasury Secretary Janet Yellen is telling world financial leaders that the U.S. economy has grown stronger because the Biden administration rejected isolationism, offering a barely veiled criticism of former President Donald Trump’s policies two weeks before the U.S. election.
Yellen was opening the IMF and World Bank annual meetings Tuesday by highlighting U.S. economic growth since the nation was in the grips of the COVID-19 pandemic. Without mentioning Trump by name, she said in an advance draft of her remarks that the Biden administration had ended a period of international isolationism that “made America and the world worse off.”
”We went from millions having lost their jobs to a historic labor market recovery,” Yellen says. She said U.S. economic growth has been “almost twice as fast as most other advanced economies this year and last, even as inflation came down sooner.”
The meetings mark the last major international finance gathering held during the Biden administration and comes as economic issues are a top concern for American voters. Republicans have blamed the Biden-Harris administration for inflation that reached a 40-year high before dropping. Trump said at a September debate that the administration “destroyed the economy."
Voters remain largely divided over whether they prefer the Republican nominee, Trump, or Democratic nominee Vice President Kamala Harris to handle key economic issues, according to an October survey by The Associated Press-NORC Center for Public Affairs Research.
Who wins the U.S. election will also have enormous impacts on global finance and the world’s economy.
Trump and Harris have spoken little about their plans for the International Monetary Fund and the World Bank. But they have differing views on trade, tariffs and other economic issues. Trump has been skeptical of world financial bodies and is promising heavy tariffs if elected. Harris is more likely to continue the Biden administration approach favoring international cooperation over threats, though she has supported some tariffs.
Yellen, like other federal officials, is barred from partisan political activity by the Hatch Act. But in her speech, she effectively promotes a potential Harris administration by praising Biden-Harris initiatives on climate, health care, infrastructure spending and other areas.
She alluded to Trump's international leadership saying: “From day one, we rejected isolationism that made America and the world worse off and pursued global economic leadership that supports economies around the world and brings significant benefits to the American people and the U.S. economy.”
Trump, who has embraced isolationism and criticized multilateral institutions, promises as president to impose a 60% tariff on all Chinese goods and a “universal’’ tariff of 10% or 20% on everything else that enters the United States, insisting that the cost of taxing imported goods is absorbed by the foreign countries that produce those goods.
However, mainstream economists say that actually amounts to a tax on American consumers that would make the economy less efficient and send inflation surging in the United States.
The Biden-Harris administration has not eliminated tariffs imposed on China during the Trump administration and in May also slapped major tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment.
The IMF will release its international outlook on the global economy, which includes updated statistics on U.S. economic growth, on Tuesday morning.
