Yellen Optimistic About Chinese Banks
U.S. Treasury Secretary, Janet Yellen, recently stated that Chinese banks are in good shape, despite the ongoing turmoil in China’s financial and real estate markets. During a visit to a job training center in Milwaukee, Yellen mentioned that Treasury officials received reassurances during their recent visit to Beijing. She also expressed that, at this stage, she does not foresee significant spillover effects on the U.S. economy.
U.S.-China Economic Working Group to Discuss China’s Economic Situation
Yellen informed reporters that a U.S.-China Economic Working Group will convene in Beijing to engage in broader discussions about China’s economic state. She highlighted that the Financial Working Group met earlier and focused particularly on the challenges faced by the banking and financial sectors due to local government debt problems and the real estate sector. However, Yellen acknowledged that Chinese financial markets experienced notable sell-offs this week, as investors, both domestic and international, grew dissatisfied with the Chinese government’s reluctance to implement significant measures to bolster the economy amidst the ongoing real estate crisis and debt pressures.
China’s Turmoil Impact on the U.S. Economy
When asked about the potential impact of China’s turmoil on the U.S. economy, Yellen acknowledged that there could be some effect; however, she emphasized that it is unlikely to be substantial. Yellen’s remarks signify her belief that the spillover effects from China’s financial situation will be limited.
Reviewing Legal Justifications for Confiscating Russian Assets
Addressing the calls to seize hundreds of billions of dollars in frozen Russian assets, Yellen stated that G7 finance ministers would soon receive a report examining the legal justifications and risks associated with confiscating these funds and redirecting them to support Ukraine. When asked about the timeline of the report, Yellen asserted that they are working on it swiftly, aiming for a prompt completion.
Justifications and Legislation Required for Asset Seizure
Yellen reiterated that a justification under international law, agreed upon by G7 countries, would be necessary for seizing Russian assets. She further explained that the U.S. Congress would need to pass legislation to enable the confiscation of Russian assets held within the United States.