Yellen discusses state of the economy, importance of aid for Ukraine

Read the Full Transcript

• Amna Nawaz:

  As Lisa reported, a government shutdown appears to be averted for now.

  Earlier today, I spoke with Treasury Secretary Janet Yellen, and I asked her for her response to the news.

• Janet Yellen, U.S. Treasury Secretary:

  Well, I'm pleased with the news.

  I think the — shutting down the government at this point would be extremely disruptive. It would deprive the American public of services that they rely on day in and day out. And our economy is doing so well with low unemployment, inflation coming down, strong growth, that it's really important to avoid a needless threat to our economic prospects.

• Amna Nawaz:

  As you know, there are more funding deadlines ahead, though, and it seems like the threat of a shutdown has now become part of the process.

  Are you worried that that continually coming close to the brink of a shutdown, as we seem to be, is having a long-term, damaging effect on the American economy?

• Janet Yellen:

  Well, I — it is disturbing. We also lived through an episode where — of the willingness of Congress to raise the debt ceiling was in doubt.

  And I think it is important to investors around the world to know that we have a wealth-functioning government. So my hope is that Congress will pass a series of appropriation bills and also provide Ukraine with the money that they so desperately need.

• Amna Nawaz:

  Let me ask you about some of the strong economic indicators we do see right now in the U.S.

  Unemployment is at its lowest levels in about 50 years. Inflation has been coming down, is now around 3 percent. The U.S. economy has been outperforming many others. But, still, as you know, Americans are still down on the economy. Consumer confidence fell again in February.

  How do you view that pessimism among Americans right now? What do you think is behind that?

• Janet Yellen:

  Well, Americans lived through a lot. The pandemic had very significant and lasting impacts, I think, on their lifestyles and attitudes.

  Importantly, although inflation has come way down, some prices that are important to so many Americans, like the cost of rent or the cost of electricity, food, they're higher than — those costs are higher than they were before the pandemic. And now wages are rising more rapidly than prices.

  So Americans are getting ahead. But, nevertheless, people remember that prices were lower. And we're trying to do everything we can to bring down health care costs and other costs that are definite strains on Americans' budgets.

• Amna Nawaz:

  We should mention you are at the G20 Summit. You're meeting with a number of officials from around the world. And, of course, support for Ukraine is high on the agenda.

  We know the White House is struggling to get Ukraine aid through Republican resistance in Congress right now. And this week, you suggested something we hadn't heard before, which was unfreezing about $300 billion of assets from the Russian Central Bank and getting that money to Ukraine.

  Does that speak to your doubt in America's ability to move more aid through Congress for Ukraine?

• Janet Yellen:

  Well, it's critically important that Congress approve of the aid that we have requested to Ukraine, and no action concerning these sovereign assets can substitute for that. And I can't overemphasize the importance, the urgency that attaches to the House passing the Ukraine package that the Senate passed.

  With respect to the Russian assets, we're looking at options. Taking the Russian assets is — that's only one possible strategy. We're looking at a number of different strategies by which we could leverage those assets for Ukraine's benefit.

  And I think what that would say to Putin is, I think Putin maybe feels that he can outlast us, that our will is faltering when it comes to supporting Ukraine. And if we can use these assets to provide a stream of financing for Ukraine, I think it says to Putin that we're in this for the long haul and not about to fold.

• Amna Nawaz:

  If I may, Madam Secretary, based on what you have seen back here in the United States unfolding in Congress, and the fact that we are in an election year, and Republicans seem largely resistant to push more Ukraine aid through, are you confident that the U.S. will approve more aid for Ukraine?

• Janet Yellen:

  We're certainly making the case as strongly as we possibly can.

  And what we saw is that, in the Senate, there was strong bipartisan support for aid to Ukraine. I believe exactly the same thing is true in the House. But we have a problem that this speaker has been unwilling to allow this to come up for a vote. But we need to find a way to have that enacted through the House. I strongly urge the House to pass this bill.

• Amna Nawaz:

  As you speak with officials from around the world there, what are they telling you about how they're watching congressional gridlock here in the U.S., the upcoming presidential election? What do they tell you about their worries or concerns?

• Janet Yellen:

  Well, I can see that they are very concerned.

  We have banded together as a coalition to provide support to Ukraine right from the moment the invasion occurred. But they can't fill the hole that would be left, both in terms of military equipment and financial support, if we don't do our share. And I have emphasized the president's commitment, my commitment to do everything conceivable to get Congress to provide this aid, strongly believe that it's in the national interest.

  And, without it, we expect Ukraine will make further losses and fall further behind.

• Amna Nawaz:

  That is the United States treasury secretary, Janet Yellen, joining us tonight.

  Madam Secretary, thank you so much for making the time to speak with us. Always a pleasure.

• Janet Yellen:

  Thank you. My pleasure.