Treasury Secretary Janet Yellen said on Friday she believed that the United States should not impose sanctions on China because of its relationship with Russia.
“I don’t think it’s necessary or appropriate,” the Treasury Secretary told Squawk Box about potential penalties for Beijing. “Senior officials are in a personal and quiet discussion with China to make sure they understand our position.”
“We will be very worried whether they will supply Russia with weapons or whether we will try to circumvent the sanctions we have imposed on Russia’s financial system and central banks,” she said. “At this point, that hasn’t happened.”
The Treasury Secretary’s remarks are made as NATO leaders step up their efforts to warn China not to allow Russia to assault Ukraine.
U.S. Treasury Secretary Janet Yellen will be in one of two locations in Denver, Colorado, March 11, 2022, to produce coins for the new American Women’s Quarter Program, including Maya Angelo’s $ 1/4 coin. After visiting a Denver mint, talk to an employee.
Jason Connolly | Pool | Reuters
The United States and its allies warn Beijing for weeks that supporting Moscow by providing weapons, alternative trade routes, and creating disinformation campaigns will face serious consequences. I’ve done it.
China has not fully condemned Russia’s provocative attacks on its neighbors and, like Russia’s President Vladimir Putin, has complained about NATO enlargement. US officials also said Russia is seeking military and economic support from China, but both countries have denied this.
President Joe Biden threatened last week with unspecified consequences if Chinese leader Xi Jinping assists Moscow in occupying Ukraine’s capital, Kyiv.
It’s unclear how the White House will penalize Beijing, but it could call on the Treasury to increase sanctions.
In an interview, Yellen also mentioned how both Russia’s invasion of Ukraine and the Covid-19 pandemic have emphasized the importance of securing the US supply chain.
“Perhaps American companies have focused on efficiency and supply chain organization in ways that reduce costs but reduce resilience,” she said. “And supply chain resilience is a top priority for government.”
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European wars and global supply concerns have caused havoc in several major commodity markets, including crude oil and wheat. West Texas Crude Oil futures prices rose above $ 130 a barrel in early March after trading at less than $ 90 in January.
Soaring oil prices have caused a corresponding rise in US gasoline prices. It rose to a high level at the beginning of the month with a national average of $ 4.33 a gallon.
Wheat is above $ 10 per bushel, about 25% higher than it was trading two months ago.
But for all of the recent turmoil, Yellen said he disagrees with the claim that trade globalization is ending.
“I really have to push it back,” she said. “We are deeply involved in the global economy and we look forward to continuing to benefit many countries around the world, not just the United States.”
Asked about the role cryptocurrencies play in the Russia-Ukraine War, Yelen said he is looking at asset classes through his obligation to protect American consumers and investors. She said she is focusing on those who see cryptocurrencies as wise investment decisions.
“I’m a little skeptical because I think there are legitimate concerns around me,” Yellen said. “Partly related to financial stability, consumer and investor protection, use in illegal transactions, etc.”