Order. Without objection, share off the rise to the clearer recess at anytime. This hearing is entirely on youll test when it secretary the treasury of the state of the International Financial system. Without objection, all members of five minutes within which to submit extraneous into aerials to the chair for inclusion in the record. I will note of the outset of this hearing we have a hard stop as a crew to see the secretary at one pm this afternoon. We will strictly observe it. Now i recognize myself for four minutes to get an opening statement. Welcome, secretary yellen. I appreciate you being here today. Todays hearing is about the state of the International Financial institutions. I want to take a minute to talk about the debt ceiling crisis that we narrowly avoided. First, were all glad that they seized behind us and. No one wanted to default no legislative branch official no executive branch official your statement says waiting until the last minute hurts american credibility i agree madam secretary this gondola with by president Speaker Pelosi last year in the last congress or. The president could engage sooner with Speaker Mccarthy when they met on february 1st. Nonetheless, it is mr. Biden signed into law and effective compromise that said there is a lot of frustration particularly about the lack of transparency of when the Treasury Department expected the debt ceiling to be breached. Otherwise known colloquially as the ex date. If the end of february chairman mchenry wrote you a requesting information on your projections and calculations. Simple enough. The response was lacking to put it mildly. This committee did not hear from you again until may 1st. After the house passed the debt ceiling limit is safe and grow act. To different acts states, june 1st and june 5th, were released. Zero explanation, zero transparency. We all have to have confidence in our fiscal analysis. Id like to turn back and focus on the issue. International Financial Institutions. Led start where we agree with. The nomination of World Bank President is a serious combat a leader who has the capacity to write the ship at the world bank and continue the improvements and leadership from the former president the world bank and the imf should be laser focused on eliminating poverty and helping countries overcome crisis but unfortunately the International Financial institutions seem to think about everything except Economic Growth. They fall into the bottomless word salad of empty rhetoric that serves western ngos, not at the interest of developing countries. No wonder china has become the Worlds Largest official creditor. Even though its landing terms are often more burdensome than those of International Financial institutions. Africa is a case study. Your recent response to our letter regarding energy was helpful were, grateful for that letter but treasury is opposing virtually all fossil fuel and Nuclear Projects in the Multilateral Development banks. Even though half the continent of africa doesnt have access to electricity. How does this make sense . Who is eager to build infrastructure there . China. Meanwhile, the imf has completely failed to bring that country into compliance with international norms. That country being china. The fund musket serious about standing up to Chinese Government if it takes this mission long term seriously. If the fund keeps letting beijing drag out restructuring costs with borrowers, there wont be much of a case for additional imf resources at the end of this year. There is no doubt china poses a generational threat to our national interest. As long as we remain committed to our values, the u. S. Will compete and outcompete the Chinese Communist party. I look forward to your testimony and i yield back. Chair now recognizes the Ranking Member for full committee to, gentleman from california for four minutes. Thank you very much, good morning. Id like to welcome secretary yellen before our committee today. I want to first art out by noting that after the values of Silicon ValleyBank Signature bank and First Republic bank it was the leadership and swift action taken in by secretary yellen and our banking regulators that prevented a banking crisis is protected our economy and ensured that the positive areas in the United States remain safe. Thats not all. After months of republican over our nations dead, secretary yellen did a masterful job of blocking out lights coming from extreme maga republicans by keeping congress appropriately updated with the latest estimate of the ex date. Ensuring our bills were paid on time. Is this level of leadership that secretary yellin has also demonstrated on the world stage. Right now, Climate Change, global pandemics and food scarcity pose major threats to the Global Economy. Now, after years of hostility in ignorance about appointed by the prior administration, secretary yellen is helping to restore the image of the united all around the world. Ur allies. By pushing the world bank, imf and other institutions. To take serious action, to tackle these existential threats before they get worse. Not only that, but under secretary yellens leadership, the United States continues to impose severe sanctions against russia. As increase Financial Resources for countries in need are authorizing additional imf special drawing rights. And is promoting a strong and vibrant domestic economy by implementing transformational pieces of legislation like the American Rescue plan and the Infrastructure Investment jobs act and the Inflation Reduction Act. Republicans are on the other hand are failing to lead. They are actively denying that Climate Change exists, dismantling the governments ability to respond. To pandemics, cutting off today to struggling countries a. Walking their own legislation in the house and threatening to drive our Global Economy off a cliff. Its telling that on the same day that we are hearing about at the secretaries and treasurys efforts to bolster the Global Economy, republicans will also bend over backwards to defend the twice impeached and indicted former president trump. Who has been arraigned for stealing and sharing some of the nations closely guarded secrets. And willfully undermining efforts to protect those secrets of. The contrast between democrats and republicans is clear. After nearly tanking the economy, republican infighting has crowned the house floor to a halt. Make no mistake. Their extreme maga agenda is not extreme enough for their extremists. Thankfully, the democratic leadership, the United States is stronger than ever. We now have 28 consecutive months of strong growth, during bidens tenure, created a record 13 million jobs all while cutting inflation by more than half compared to last summer based off the latest Consumer Price index. Numbers out of this morning will further progress in the months to come. The Biden Administration democrats have shown that what happens when you deliver legislation that puts working families first. And i look forward to todays testimony. I yield back. Chair recognizes mr. Chairman of the subcommittee on National Security illicit finance and International Financial solutions for one minute. Thank you, mister chairman or. Good morning, miss yellen. Financial solutions were found bush to and cultivate Economic Growth around the world. Its becoming clear that these organizations are neither capable of nor interested in meeting these goals. The world makes unrealistic and harmful green agendas preventing some of the poorest nations from obtaining the cheapest and more Reliable Energy sources such as nuclear and natural gas. The Worlds Largest polluter, china, from the ifis that no other wealthy nation is allowed to receive. Country what the world s second largest economy continues to receive more than a billion dollars per year from the world bank. China remains one of the banks largest debtors. Sadly but not surprisingly, its our money that is largely paying for these horrible policies. Secretary yellen i, look forward to hearing your ideas to stop them with. That, mister chairman, i yield back. Chair recognizes the Ranking Member the subcommittee on National Security illicit finance International Financial solutions mrs. Bailey of ohio for one minute. Thank you, mister chairman and Ranking Members for holding this hearing. Madam secretary, i like to thank you and the Biden Harris Administration for your leadership in preserving the strength and power of the United States on the global stage. It weighs under your leadership your guidance and most importantly your advice that we have avoided a bank crisis. We imposed economic measures in support of ukraine. Averted a disastrous promoter, the strong and resilient domestic economy. Further, we have preserved our status in the Global Economy through your voice and a vote at the imf world, bank and other ifis attack that is increasingly critical as we see foreign adversary seek to replace us in africa and the caribbean and around the world. Having traveled to the caribbean with congresswoman mayers, particularly bahamas or betos, i have seen firsthand the destructive nature of chinese relationships and recognize our significance thank you madam secretary for your leadership. And i look forward to your testimony. Gentle meals back. Today we will come that as many honorable janet yellen secretary, a treasury, secretary yellen, we thank you for taking time to be here. Youll be recognized for five minutes to give a presentation of your testimony. Without objection, your written statement will be made part of our record secretary yellen youre now recognized for five minutes. Thank you. Mister chairman and Ranking Members waters. Thank you for your invitation to testify before this committee today. In my capacity as chair of the National Advisory council on International Monetary and financial policies. And looking forward to discussing treasuries oversight of the international a Financial Institutions. In the past few years have demonstrated the importance of these institutions as part of our broader economic and Foreign Policy tool kit. Since 2020, global shocks such as the pandemic and russias illegal war against ukraine have had a significant impacts under American Families and businesses. In the face of the shocks, the International Financial institutions and vans u. S. National interests by fostering a more resilient Global Economy. They enable us to mobilize swift responses, to mitigate global risk to the u. S. Economic outlook, they helped drive u. S. Economic growth by expanding Global Demand for American Products and services. Thats why there is always been a robust bipartisan consensus around strengthening americas leadership at these global institutions. Over the past year, these institutions have continued to make a smart and Cost Effective investments. To meet urgent needs. They leverage our dollars to mobilize additional funding from our partners in the private sector. For example, the imf approved a landmark 15 billion dollar Economic Program for ukraine earlier this year. This program combined with direct budget support provided by the United States and our partners will help ukraines immediate financing needs. It will also underpin its governments Good Governance and anticorruption reform efforts. The world bank and other Multilateral Development banks have also provided Central Support to ukraine. That includes facilitating the responsible and accountable disbursement of funds to help stabilize its economy. Our leadership at these institutions is one of the core ways of engaging with emerging markets and developing countries. The ifis provide resources to tackle of the challenges the world faces from withering economic storms to spurring long Term Economic development. In 2022 alone, the Development Banks provided over 150 billion dollars in funding to developing countries. And these institutions reflect american values. Assistance from the ifis strong requirements for governance accountability and sustainability. It serves as an important counter weight to nontransparent, on sustainable lending from others like china. As an example, Multilateral Development banks are a leading source of financing to close the infrastructure gap of developing countries. These Infrastructure Projects here are all robust standards that are aimed at achieving sustainable and inclusive growth in our partner communities. The United States is not a passive shareholder. We actively shaped the priorities of these institutions as a leading shareholder in nearly all of them. Major project past few monthss been to evolve the world bank, to better deliver against global challenges as part of the Poverty Reduction and development initiatives. Weve already introduced reforms that will stretch the world banks Balance Sheet to unlock as much as 50 billion dollars in additional lending capacity over the next decade. Weve made preliminary updates to its mission in operations. And looking forward to working with the new World Bank President , ajay banga, to build further momentum for our evolution initiative. Looking ahead, the Biden Administration seeks to bolster u. S. Leadership in these institutions. To that end, we request authorization to newer participation in the imfs new arrangements to borrow critical backstop to imf resources. We also seek authorization to lend two key imf trust funds. The Poverty Reduction and growth trust and resilience and sustainability trust. These actions will help the imf address economic price crises with an emphasis on supporting developing countries amid heightened risks and we would also like to boost our involvement in when the African Development fund. These investments will bolster our engagement in these regions at a time of geopolitical competition. I want to end by discussing the debt limit. I am relieved that with the president s leadership, Congress Took action to address the debt limit in time. While we were able to avoid default, United States once again can dangerously close to the line. This cannot be normalized as the way we do business in washington. Waiting until the last minute hurts our Global Leadership and credibility on the world stage. We are a nation that keeps our word and pays our bill is one we should never give anyone any reason to think otherwise. Thank you. Thank the secretary for her testimony. I now turn to member questions i recognize myself for five minutes for questions. Beto circuit, area right in interest of the g7 statement on ukraine from your meeting in a row sharma last month. Which reiterated a commitment to stand against russias illegal war in ukraine. G7 leaders called on russia to pay for the damages and long term reconstruction costs of ukraine. While the u. S. Has made major contributions thus far, i agree that ultimately russia should bear that responsibility. Thats why im working on a bill called the ukraine reconstruction act. Which would ensure the United States has the authority it needs to take title to russian sovereign absence and transfer them to an international escrow fund to pay for war damages. This would be fully in line with international norms, conventions and precedent and also be done in coordination with our allies in europe and elsewhere. It