Ms. Yellen, likely to meet with the Chinese side soon at the end of President Biden's term

September 7th (Reuters)

US Treasury Secretary Janet Yellen said on Saturday that duties at the highest government level are 'probably coming to an end' after President Joe Biden's term ends in January.

At the Texas Tribune Festival held in Austin, when asked whether her role will end when the new administration takes office in January, or she will continue to work, or take on a role in the new administration, Ms. Yellen replied, 'It will probably end, but… we'll see.'

This comment is the closest Yellen (78) has come to announcing her future plans in the midst of the heated presidential election between Vice President Kamala Harris and former President Donald Trump. Ms. Yellen, the first woman to serve as Treasury Secretary, Federal Reserve Board (FRB) Chair, and Director of the White House National Economic Council.

Ms. Yellen, at an event held in Austin, said she would have to do a lot of work at the Treasury over the next few months, including possibly meeting again with Mr. Han Li-fu, China's Vice Premier and counterpart in Beijing, to manage often tense relations.

During her visit to Beijing in April, Ms. Yellen warned China to curb excessive industrial production capacity before Vice President Biden decides to raise tariffs on Chinese-made electric automobiles, batteries, solar cell products, and semiconductors.

Ms. Yellen stated that she welcomes visits to the United States but also mentioned the possibility of returning to China, saying, 'In my estimation, I will visit China at some point.'

Jay Shambaugh, the top economic diplomat at the Treasury Department, plans to lead a delegation to Beijing 'very soon' to discuss economic issues. Shambaugh heads the U.S.-China Economic Working Group and considers addressing China's excessive factory production as the top priority.

Ms. Yellen stated that U.S.-China relations need to be prioritized and nurtured by the next U.S. administration, emphasizing the need for discussions at the highest levels and among government officials.

'We have enough differences, and if we don't have the opportunity to discuss and place them in context, tensions could escalate. So, this is something that really requires ongoing attention. I hope that will be the case.'

Ms. Yellen also noted that the U.S. economy has nearly achieved a 'soft landing' with a slight decrease in the unemployment rate despite the slowdown in job growth, along with a decline in inflation rate.

'Seeing the pace of job creation slowing over time, it's nice to see it stabilizing at its current level. We need to be cautious not to weaken further,' Ms. Yellen said.

Mr. Tong stated that consumer spending is "quite robust", and while there is a "decrease in enthusiastic movement of employment", there is no significant reduction in personnel.

"I am currently paying attention to the downside risks in terms of employment, but what we are seeing, and will continue to see, is a good and robust economy," Ms. Yellen said.