Department officials and policy advocates testifying on traumatic rain injury and blast exposure care before the Senate Armed Services submmtee at 3 00 p. M. Eastern. You can wah r live coverage on the free sp now video app or online at cspan. Org. Treasury secretary janet yellen called on israel to ensure that tax revenue was making its way to palestinians in the west bank. She spoke at a News Conference ahead of the g20 finance ministers meeting in brazil. This is 35 minutes. Good morning. Thank you to everyone for being here today and to the minister for hosting these meetings. They are an opportunity to advance collective action to further bolster the Global Economy and continue addressing the challenges we face. Before i take your questions i will speak to the priorities that i will be focused on offense the next few days here in brazil. First, i look forward to discussions about the state of the Global Economy and how we can further strengthen it. Over the past year Global Growth has been resilient and stronger than predicted. The i. M. F. And other forecasters projected that there would be a broad based slowdown in the Global Economy in 2023, and that didnt happen. Global growth came in at 3. 1 , exceeding expectations. Inflation has fallen and is expected to continue to fall this year in about 80 of economies. Going forward, we remain cognizant of the risks facing the Global Outlook and continue to carefully monitor the economic challenges in certain countries. But the Global Economy remains resilient. The strength of the u. S. Economy has been a key driver of this positive economic performance. The Biden Administrations policies starting with the American Rescue plan and continuing with historic investment in infrastructure, clean energy and manufacturing have led to strong u. S. G. D. P. Growth. Inflation has come down significantly from its peak. The u. S. Labor market is also historically strong. Chinese Labor Force Participation is above its prepandemic level and the Unemployment Rate is near historic lows. Had the u. S. Recession come in 2023 like many predicted Global Growth would have been thrown off track. While there are risks to our outlook, americas growth has consistently exceeded projections. In shorts americas path to a soft landing has underpinned Global Growth. Momentum in many economies including growth in brazil has also contributed while other economies face challenges. The actions we have taken through forums like the g20 have helped strengthen the underpinnings of the Global Economy and positioned us to make further progress combatting challenges. I believe that the results we have seen over the past few years and foundations we are laying for the longterm are also a testament to how strong u. S. Leadership can benefit both americans and the world. From the beginning of this administration President Biden has made clear that american isolationism was over and for a simple reason. Retreating from the world hurt americans at home and undermined the values we share with our partners and allies. We set forth a new principle that america is strongest when we engage with the world. Multilateral action advances americas own Economic Security and prosperity. And it will lead to Better Outcomes for people in america and around the world. I have taken this Vision Forward as treasury secretary. Let me highlight three areas of work that we will advance this week. First, the Biden Administration remains committed to deep,ing ties with emerging market economies. As treasury secretary, i have traveled it indonesia, india, mexico, south africa and vietnam and laid work on building resilient supply chains and driving investment in hey quality sustainable chick growth. The u. S. Has already mobilized more than 30 billion through the partnership for Global Infrastructure and investment, which we launched with our g7 counterparts with a target of mobilizing 600 billion for Global Infrastructure investments over five years. Through the Just Energy Transition partnerships we are directing public and private finance to support emerging markets, climate and policy reform agendas. We are also furthering brazils priorities for the g20 president s day throughout this year including focus on addressing inequality and poverty which aligns with our bork work at home to reach people and places that have been too often left behind. We support brazils plans to provide a forum for african countries to shape the conversation on debt and its commitment to improving the climate finance architecture. The u. S. Had a similarly Strong Partnership with indonesia and india throughout their post years and we look forward to continuing with centric and u. S. Each assume the g20 presidency in the next two years. Second, we seek to collectively address the global challenges of pandemics, Climate Change and conflict and fragility. We showed that multilateral efforts can lead to quick progress early on with the creation of the Pandemic Fund. The Pandemic Fund raised nearly 2 billion from 25 donors including contributions from many g20 partners in the first year following launch. It went to projects in 37 countries in the first call for proposals and the second call is well under way. We are also pursuing ongoing work to provide for the Multi Lateral bank. Since i first called for that in 2022 we have built a coalition around a common vision. When locked in an initial 200 billion in new m. D. B. Lending capacity over the coming decade and supported leaders across the m. D. B. s who are pursuing bold innovations including president banga at the world bank. Im glad brazil has made the m. D. B. s central to its presidency and i look forward to continuing our collective work on further efforts to increase the m. D. B. s financial capacity. Get the m. D. B. s to work better as a system and increase mobilization of project capital to support emerging and developing markets. Im glad that the u. S. Helped led the effort for a significant Capital Increase for i. D. B. Invest. It should be approved next month. Third, the strength of the Global Economy is underpinned by our work to format to fortify the architecture. The u. S. Led efforts to align 145 countries on global minimum tax. When more action is needed at home or abroad this is being implemented in jurisdictions around the world and will fill in what has been a race to the bottom on corporate taxation. We have added to the i. M. F. Tool kit creating the resilience and Sustainability Trust to provide longterm financing for khraoeufplt and Health Investments and the food truck window to combat the devastating rise in Food Insecurity from russias war on ukraine. Last year we also reached agreement on a 50 quota increase that will ensure the i. M. F. Has the necessary resources to play its crucial practice response role. This success provides a Strong Foundation for further multilateral action to continue to benefit america and countries around the world. I would like to end by addressing russias invasion of ukraine and conflict in the middle east. The United States has been tkpwaoeultded by our commitment to protecting the foundational principles that underlie the International System and Global Economy. In the almost exact two years since russias invasion of ukraine, this brutal and unjust war has had a devastating human cost as i saw firsthand when i visited kyiv one year ago after the First Anniversary of the invasion. It has also caused economic harm around the world. To advance our values and protect the Global Economy the u. S. And strong Global Coalition has supported ukraine with military, security, humanitarian and economic assistance while working tirelessly to deprive russia of the funding and military equipment it needs to fuel its aggression. The policy has reduced russian revenue while keeping Global Energy markets well supplied. We developed an unprecedented multilateral sanctions regime and continue to take actions to crack down on sanctions evasion such as President Bidens executive order just last december authorizing sanctions on foreign Financial Institutions that facilitate certain transactions or services involving russias military industrial base. When russia invaded the price of oil spiked to over 120 per barrel, a devastating shock for emerging market and lower income importing countries. Since implementing the price cap tease accountants have benefited from increased stability and lower prices. We are continuing to take action to address other challenges for emerging markets stemming from the invasion as well, such as Food Insecurity. In december we announced the leading pledge to replenishment of the International Fund for agriculture and development, which will continue allocating 100 of its core resources to low income and lower middle income countries. And will now scale up its climate finance target and project engagement. Additional action is needed to combat Food Insecurity and other challenges. As we enter the third year of putins war of choice President Biden and i are committed to doing more alongside our allies and partners. I applaud e. U. Members reaching agreement on 50 billion euros for ukraine. At home, in the u. S. , the Senate Passed the national consumeral with strong bipartisan support. The house of reference must now act to maintain budget support for ukraine to enable ukraines continued heroic resistance and protect our National Security interests and the values we and our allies and partners all share. We should be clear, we putin first invaded ukraine, he believed he could take over easily and he failed for two reasons. First, due to the strength, commitment and resilience of the ukrainian people. Second, due to the efforts and resources of the broad Global Coalition that has stood with ukraine. This week, g7 leaders announced additional coordinated sanctions to degrade russias war machine and we will continue to take action to restrict russias access to the materials and money it needs to continue the war. But now putins strategy is hoping he can simply wait out ukraine and its allies, and we must prove him wrong and show the kremlin that we will collectively stand with ukraine for as long as it takes. Our coalition representing more than half of the Global Economy took action to immobilize 285 billion in russian sovereign assets and jointly affirmed this money will remain frozen until russia pays for the immense damage it has caused. My european colleagues have now taken an important first step to harness windfall proceeds from russian sovereign actions. That is an action i fully endorse. I also believe it is necessary and urgent for our coalition to find a way to unlock the value of these immobilized assets to support ukraines continued resistance and longterm reconstruction. While we should act together and in a considered way, i believe there is a Strong International law, economic and moral indication for moving forward. This would be a decisive response to russiasen precedented threat to global stability. And it would make clear russia cannot win by prolonging the war and would incentivize it to come to the table to negotiate a just peace with ukraine. Since this past october our commitment to protecting the Global Economy has also shaped our actions in response to the conflict with the middle east. We have not seen a Significant Impact on the Global Economy but we continue to monitor it closely. We have made efforts to counter this and acted decisively in response to the houthi attacks in the red sea and coordinating with allies to sanction leaders and supporters of multiple terrorist actors including hamas, the houthi and other rannen proxies. The Global Economy cant be undermined by terrorism. We have also acted in response to the conflicts devastating human impact including working with the humanitarian sector to help assist palestinians and get legitimate aid to where it is most needed. We continue to explore options for strengthening the west bank economy following President Bidens executive order earlier this month. The United States has urged the Israeli Government to release clearance revenue to the Palestinian Authority to fund basic services and bolster the economy in the west bank. I welcome news that an agreement has been reached and funds have started to flow, and this pus continue. I also recently outlined in a letter to minister netanyahu a number of steps that the United States believe must be taken including reinstating work permits for palestinians and reducing barriers to commerce within the west bank. These actions are vital to the economic wellbeing of palestinians and israelis alike. And we support the world Bank Agencies commitment to emergency Food Security assistance in gaza and economic support for the west bank and the ongoing m. D. B. And i. M. F. Programs in egypt and jordan. On all of these fronts, the United States will continue to work with we have come up against challenges in the recent years but we have also made significant progress to put the Global Economy and the multilateral system on better fitting. I am optimistic about the impacts that strong u. S. Engagement will continue to have as we navigate the challenges ahead and i look forward to a productive g20 set of meetings. First set of questions. I have a couple of questions the first one is the economic outlook. You mentioned there are challenges in certain countries and i was wondering if you could elaborate about which risks you identify as a risk and on the russian assets several of your counterparts in europe are concerned about moving ahead with blocking economic value because theyre worried about the effect it would have on economic stability. Do you share their concerns about Financial Stability. Whether you share their concerns and think it is a risk worth taking. Janet yellen in general i consider it favorable. There are always risks. Inflation has been coming down in many countries and we have seen a tightening of Monetary Policy in many countries to cause that and not create some downside risk. In addition to geopolitical events, are always a source of risk. We have worked very hard to make sure the conflict between israel and gaza and hamas does not expand into larger regional conflict but where it to do so, there could be significant economic spillovers. Fortunately, we have not seen that. In respect to russian sovereign assets, i believe the g7 should Work Together to explore a number of approaches that have been suggested for unlocking their economic value. One would be seizing the assets themselves but there are other ideas such as using them as collateral sbarro from global markets. With respect to Financial Stability a risk would arise if there were a massive shift away from currencies but i think that is extremely unlikely given the uniqueness of the situation where russia is brazenly violating International Norms and the group of countries representing half of the Global Economy and all of the currencies. Realistically, there are not alternatives to the dollar euro so i am not too worried about that. There are risks to Financial Stability risks. To outline possible options for consideration. Next question goes to reuters. Ive a question about the israel palestine issues. You said you wrote to Prime Minister netanyahu. Can you tell us a little bit a more about what authority you are writing to him. And on the sovereign acid issue. Is there something you think is preferable or with the cleanest solution be to just seize assets . Janet yellen let me start with my letter to netanyahu. The treasury is concerned, we have ongoing relations with israel and we are concerned about israels economy. We are also concerned about the west bank economy. I have written to the Prime Minister to discuss my concerns about the west bank and actions that israel has taken that i believe are seriously impairing the west bank economy, reducing income and also with the same time having an adverse impact on israel and it looks like we may have a solution with respect to revenue. But blocking west Bank Residents from working it has a significant negative effect on incomes in the west bank and israel is also dependent on that labor force and is having in adverse effect on israels economy. Im also concerned about barriers to movement that israel has set up within the west bank that makes it difficult for commerce to take place. These are issues that we are involved in and we want to weigh in. It was just sent a day or two ago. Next question. Thank you for taking my question. My question is about russians frozen assets and some professionals talked about seizures from other countries and that this is only temporary. Im just curious encase the u. S. Congress passes the bill about ukraine, why do you think all of this will still be necessary . Sec yellen i think its important for the g7 and our allies and partners to do is to find a way to unlock the economic value of the frozen russian assets. Seizure would be the simplest possibility there is a bill now that would permit it and most of the g7 countries. So that domestic action would need to be taken to make that legal. It is important to the g7 to Work Together and find ways legal domestically and in other countries and in accordance with International Law. You mentioned temporary and there is a countermeasures theory that i believe has strong justification in International Law and if that is the international justification that is chosen the measures would have to be designed to comply with that requirement. This goes back to andreas second question. We dont have a preferred strategy for how to do this. We want the g7 and our allies to Work Together. Different countries have different concerns and we want to find a way to unlock the value of these assets consistent with domestic and International Law is something that can command support from all of us. The next question goes to pedro. [speaking portugese] good morning mr. Secretary. I would like to know your outlook for the global and u. S. Economy taking into account a recession in the United States . Sec yellen let me start with the u. S. Economy. We have a very strong outlook. The u. S. Economy is doing extraordinarily well. Growth over the last year, 2023 came in at 3. 1 and even at the end of the year, we have had job growth averaging close to 300,000 jobs a month. At the same time, inflation has come way down and according to the measure of the Federal Reserve to gauge inflation over the past six months, inflation at an annual rate has been running at 2 . I feel that we have made tremendous progress and i expect good performance to continue in the coming year and i would not be surprised if growth comes in lower than 3. 1 . Certainly not expecting a recession. We have the lowest stretch of unemployment, under 4 and 50 years and i expect the labor market to remain strong and unemployment to remain low. I do think it is reasonable to assume that as the year go on inflation will move closer to the 2 target. It is true that a year ago many forecasters envisioned that there would be a recession and essentially, the basis for that was thinking inflation cannot come down unless there was a lot of looseness in labor and product markets. In the fed would be forced to tighten to a point where they created those conditions. But what we have seen a inflation has come down even in the context in an economy with the tight labor market and what that tells us is that an important source of the inflation. Final question goes to joshua with adp. Good morning, inc. You the wealthy nations did not manage to meet on time as it was. If donald trump wins the election in november it will be happening right around that time the next climate talks will be taking place. Sec yellen the United States is committed on Climate Change domestically and internationally to improve the flow of resources to developing countries and emerging markets. We are working to accomplish that in many different ways including through restructuring and evolution of the missions and operating strategies of the world bank and mdbs more broadly. We want to work through supply Chain Resilience in the area of energy and i will be talking here and brazil with my counterparts about strengthening supply chains as well is a cooperation we may have on issues pertaining to the a mazon which we strongly support. Globally, we are trying to create a set of best practices for Financial Institutions to follow that have made commitments to achieve net zero by 2050. We are working with any number of countries on an individual basis. Through the Just Energy Partnerships we are working with south africa, indonesia and other countries to mobilize private finance, mobilizing private finance for climate is an important objective of us. That concludes todays press conference