The withdrawal of President Joe Biden from the presidential race has left G20 finance ministers quite anxious about the U.S.' policy commitments, warranting the country's Secretary of Treasury Janet Yellen to answer the world leaders' questions concerning the same.
Based on a press release from the Department of Treasury, Yellen would be in Brazil from July 24-27, as she will be participating in a G20 Finance Ministers and Central Bank Governors Meeting. On July 27, she will be taking part in a meeting of Amazon basin ministers.
Yellen's trip to Brazil to face the G20 finance ministers is the Biden administration's first official act after the president opted to drop out of the race.
A senior official from the U.S. Treasury has revealed that Yellen's presence at the G20 summit in Brazil aims to address subjects on green energy incentives, efforts to tackle debt distress, as well as stepping up on bank lending to answer climate change, support for Ukraine and the capacity of China's manufacturing sector, Reuters reported.
The U.S. Treasury noted that Yellen will be reiterating the country's commitment to Ukraine, which includes providing it with the needed aid to sustain its defenses. It will also underscore that it will deny Russia access to weapons and money that it would need to wage in war.
While Yellen's intentions are clear, analysts believe finance ministers would be wondering about the continuity of U.S. policies. According to a European G20 delegate, the situation in the U.S. is really the moving force that brought about the meeting. The delegate also mentioned that leaders would have questions on the commitments of the U.S. on taxes and climate, including a possible victory of former president Trump.
Josh Lipsky, Atlantic Council's GeoEconomic Center's senior director, said that such concerns may not be openly discussed during the formal G20 sessions, and will likely come up in private conversations. Aside from this, Lipsky added that officials would also want to hear about the economic priorities of vice president Kamala Harris, who received Biden's endorsement to become the Democratic Party's presidential nominee, Reuters reported.
