Yellen's statement on 'stable growth'

US Treasury Secretary Janet Yellen stated that data showing that the country’s economy grew by 2.8 percent in the second quarter of the year confirms that the US is on a path of “stable growth and falling inflation.” US Treasury Secretary Janet Yellen held a press conference in Brazil, where she was attending the G20 Finance Ministers and Central Bank Governors Meetings. At the beginning of the meeting, Yellen assessed the second-quarter Gross Domestic Product (GDP) data announced in the US today, saying, “Instead of declining in 2023, US GDP is growing strongly at a 3.1 percent rate, and this morning’s new data suggests growth of 2.8 percent in the second quarter of this year. This confirms that we are on a path of stable growth and falling inflation.” Yellen said that the global economy remains resilient, thanks in large part to the “remarkable” economic performance of the US. Noting that the unemployment rate in the US continues to be historically low, Yellen said that inflation has fallen significantly from its peak and is trending towards the US Federal Reserve’s (Fed) target. Yellen explained that they are aware that prices are still too high for many Americans, which is why they are developing an agenda focused on long-standing cost pressures, from housing to healthcare and energy. Exemption for Israeli banks to continue cooperation with Palestinian banks should be extended by 1 year Also touching on geopolitical developments, Yellen said that they continue to take the necessary steps regarding the ongoing conflicts in the Middle East. Yellen noted that the Treasury Department continues to focus on countering the Iranian regime’s financing of terrorist actors, ensuring that humanitarian aid reaches the Palestinians in Gaza, and stabilizing the West Bank economy. US Treasury Secretary Yellen said, “I am pleased that Israel is allowing its banks to continue cooperation with Palestinian banks, but I believe that the exemption should be extended by 1 year to facilitate this cooperation.” “I will continue to press China to address its macroeconomic model” Noting that the U.S. continues to work with China to establish a healthy economic relationship where American companies and workers can compete on equal terms, Yellen said, “That means I will continue to pressure China to address its macroeconomic model, which contributes to industrial overcapacity by transferring too much savings and too much subsidies to manufacturing.” Yellen said this poses a threat to the survival of companies and workers around the world and that she knows these concerns are shared by many. “We don’t see the need for a global agreement to tax billionaires” When asked about the U.S. position on Brazil’s proposal to impose a 2 percent tax on global billionaires, Yellen said that coordinating tax policy globally is very difficult. “We don’t see the need or really think it’s desirable to reach a global agreement on this issue. We think all countries should make sure that their taxation systems are fair and progressive,” Yellen said.