Treasury Secretary Janet Yellen says G20 gathering CAN be effective despite Putin and Xi Jinping skipping the confab as she touts major World Bank lending boost to counter China’s ‘Belt and Road’ initiative
- Yellen addressed reporters in New Delhi as the G20 summit geared up
- She said Russia’s war on Ukraine is holding back growth
- Administration is pushing multilateral lending to counter Beijing influence
The absence of Russia’s Vladimir Putin and China’s Xi Jinping won’t prevent the annual G20 gathering getting underway from being effective, Treasury Secretary Janet Yellen told reporters Friday.
‘I believe the G20, in spite of obvious problems due to Russia’s war against Ukraine and Russia’s general absence from G20 initiatives, I believe that G20 has been extremely effective and especially under India’s leadership,’ Yellen told reporters in New Delhi.
She was the top official on the ground while President Joe Biden made his way to India with a refueling stop in Germany, in an arrival choreographed with Vice President Kamala Harris’ return from Asia to ensure one of them was on U.S. soil at all times.
Yellen touted a push to boost resources for multilateral development banks – which U.S. official see as a potential counter to China’s growing regional influence through its own ‘Belt and Road’ initiative.
Treasury Secretary Janet Yellen addressed the media as President Joe Biden made his way to India for the G20 summit
She said she was ‘fully aware’ of the risk to global grown, saying the ‘most important major influence is Russia’s war on Ukraine, which has escalated energy and food prices.’
‘The most important thing we could do for global growth is for Russia to end its brutal war on Ukraine,’ she said, as Ukraine continues to fight counteroffensive operations backed by U.S. and allied weaponry.
She said the administration has asked Congress for legislation that would lend $21 billion to International Monetary Fund trust funds, including poor countries that ‘desperately’ need more resources.
Yellen also said the United States has asked the U.S. Congress for permission to lend $21 billion to IMF trust funds, including one for the poorest countries, which ‘desperately needs more resources.’
She said a $2.25 billion appropriations request would lead to $25 billion in additional global lending.
She urged other G20 countries to ‘enhance’ the financial capacity of the World Bank and other multilateral lending institutions.
‘Reforms that are underway as I indicated could lead over the next decade to an additional $200 billion financing,’ she said, referencing a boost from other reforms.
Yellen was also asked about Chinese President Xi Jinping’s absence from the event, at a time of high tensions with Washington.
President Joe Biden’s international trip comes as the leaders of China and Russia opted to skip the event hosted by India
The White House told reporters aboard Air Force One that Biden had no recent calls with Xi and there was no meeting planned in the immediate future.
She said the global economy has been ‘resilient’ and the U.S. ‘has done particularly well.’
Yellen was serving as the public face of the U.S on Friday. National Security advisor Jake Sullivan and White House Press Secretary briefed reporters en route. Biden is set to arrive here Friday night, but his first meeting with Indian Prime Minister Narendra Modi is set to be closed to reporters.