US Treasury Secretary Janet Yellen said in an interview on Thursday that despite recent tariff hikes, Washington’s economic ties with Beijing have become closer, and the two sides are cooperating in areas such as financial stability.
“I believe it has come closer,” he told CNBC about relations between the world’s two largest economies.
“We have found ways to constructively discuss and resolve our differences.”
This is despite intense competition between the United States and China in recent years.
President Joe Biden’s administration has taken steps to limit Chinese companies’ access to cutting-edge equipment, particularly for military use, and added to tariffs on Chinese-made products introduced by his predecessor Donald Trump.
Ahead of the November election, in which Trump faces Vice President Kamala Harris, both candidates have taken a tough stance toward China.
But Yellen said of the current relationship: “We are cooperating in areas where the world needs us to work together. Financial stability is one of these areas.”
On the U.S. economy, Yellen told CNBC that all signs, from the jobs market to growth data, “suggest we are on the path to a soft landing” even though risks remain.
“The last leg of inflation involves the cost of housing, and I believe there are good reasons to think that will decline,” he said.
On Thursday, Yellen also called for regulation to increase the resilience of the US financial system.
“A resilient financial system is vital to a strong economy,” he said at the Federal Reserve Bank of New York.
“And strengthening it requires an emphasis on thoughtful regulation, including by meeting challenges from advocates who seek to roll back policies and regulations,” he said.
Taking aim at Trump’s first term, he said Treasury’s focus on financial stability “almost disappeared” when he took office in 2021.
“Appropriate regulation is critical to supporting a resilient financial system that serves as an engine for innovation and growth,” Yellen said.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
