Markets Wired

WASHINGTON — U.S. Secretary of the Treasury Janet L. Yellen met today with CEO members of the board of directors of the Bank Policy Institute to discuss the global and domestic economic outlook, the Biden-Harris Administration’s work to address inflation, the Administration’s firm commitment to holding Russia accountable for its for its brutal and unprovoked war in Ukraine, and efforts to promote responsible innovation in digital assets.

Secretary Yellen emphasized the global economic challenges confronting countries throughout the world, including inflation, notably energy and food price hikes resulting from Russia’s war and supply chain issues. She noted that the Russian economy is staggering under the weight of financial and trade sanctions and the cutoff of business by many U.S. and international companies. The Secretary also highlighted the strong partnership that financial institutions have had with Treasury to implement historic sanctions and to protect financial institutions from cyber threats.

The participants and Secretary Yellen also discussed the Administration’s work to lower inflation by respecting the independence of the Federal Reserve,  mitigating supply chain issues, holding down oil prices through an historic release from the strategic petroleum reserve, and advancing measures to lower costs on items like prescription drugs and health care. The Secretary also highlighted the recent gains made in cutting the deficit, which can reduce price pressures.

The Secretary and members of the board also discussed the need to put in place an appropriate regulatory framework for digital assets. Secretary Yellen noted efforts underway with respect to stablecoins and underscored the need for Congress to move forward on legislation that creates an appropriate regulatory framework, to supplement regulators’ existing authorities. The Secretary also highlighted on-going work in additional areas of digital assets policy as called for in the Executive Order on Ensuring Responsible Development of Digital Assets issued by President Biden in March 2022, and the work that Treasury is doing with its partners in other agencies to protect consumers, promote financial inclusion, ensure the safety of the U.S. and global financial system, and address national security interests.