Yellen Cites Rejection of Isolationism for Strengthening U.S. Economy

TL/DR –

U.S. Treasury Secretary Janet Yellen has said that the U.S. economy is stronger due to the Biden administration’s rejection of isolationism, a statement that implicitly criticizes the policies of the Trump administration. Speaking at the IMF and World Bank annual meetings, Yellen noted a significant U.S. economic recovery under Biden, contrasting it with a period of international isolationism that had negatively affected both America and the world. The IMF has upgraded its U.S. economic growth forecast, while reducing its expectations for Europe and China, with U.S. growth driven by robust consumer spending and real wage increases.

On Tuesday, Janet Yellen, U.S Secretary of the Treasury, conveyed to global economic leaders that the U.S economy has become more robust due to the Biden administration rejecting isolationism. This statement can be seen as a criticism of former President Donald Trump’s policies just a fortnight before the U.S. election.

Yellen began the IMF and World Bank annual meetings speaking on U.S. economic growth since the COVID-19 pandemic. She boasted that the U.S. growth has been “nearly double that of other advanced economies this year and last, while inflation decreased earlier.”

The International Monetary Fund (IMF) improved its economic outlook for the U.S. this year while downgrading the forecasts for Europe and China. The U.S., being the world’s largest economy, is expected to grow by 2.8% this year, led by robust consumer spending and wage increases.

These meetings signify the last significant international finance assembly during the Biden administration and occur while economic issues are a pressing worry for American voters. The Biden-Harris administration has been accused of creating an inflation crisis and dwindling business confidence.

The result of the U.S. election will have a significant impact on global finance and the global economy. Trump and Harris have yet to elaborate on their plans for the IMF and the World Bank, but they hold differing opinions on trade, tariffs, and other economic factors.

Yellen praised the Biden-Harris administration’s initiatives on climate, health care, infrastructure spending and other areas. She denounced Trump’s isolationism, claiming it negatively impacted both the U.S. and global economies.

The Biden-Harris administration has decided to keep tariffs imposed on China during the Trump administration. Meanwhile, Trump promises to enforce heavy tariffs, particularly on China, a move that economists argue would lead to a less efficient economy and swelling inflation in the U.S.

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