Janet Yellen: Biden’s Bills Critical for Economic Growth

BIANNA GOLODRYGA: Thank you so much for joining us, Secretary Yellen. We know that President Biden had left Glasgow having committed billions of dollars in fighting climate change, but experts, including your advisers, know that the real number to really hit that target is in the trillions of dollars. And I want to ask you about some news that was just made today, that private companies have committed up to $130 trillion in investments to hit a net zero emissions target by 2050. How realistic is that figure? And I know you met with some heads of companies and business leaders. Are you ready to hold them accountable to that pledge?

JANET YELLEN, U.S. TREASURY SECRETARY: Well, I think we are. They have made very impressive commitments of big banks and asset managers, as you said, that have command over 100 trillion or more dollars. They’re committed to reach net zero by 2050 and are thinking very hard. It was impressive to hear them discuss their plans to make that concrete. So, I think they’re very committed to this. And the government needs to make sure that we have policies in place that make clear what the path should be and the policies that are necessary to support those flows of private and public capital. And, of course, there’s a role for public capital, along with private capital. We have been working with the Multilateral Development Banks to make sure that the resources they have also leverage private finance to reach — to provide financing to emerging markets, developing economies as well.

GOLODRYGA: Well, you yourself have overseen a significant agreement while you have been overseas. It’s been in negotiation now for months. And, obviously, that’s getting 136 countries to agree to a 15 percent global minimum corporate tax. You have said that you are confident that this will be passed through Congress. But we’re hearing some reservations from Republican members of Congress, as well as the U.S. Chambers of Commerce. So, how can you say that you are so confident when you’re hearing some reservations back here in the States?

YELLEN: Well, the steps that the United States needs to take to come into compliance, we already have a minimum tax of 10.5 percent. We need to raise that to 15 or higher. And we need to make sure that the tax is — applies on a country-by-country basis. And those necessary steps are in the reconciliation legislation that Congress is considering now. So, I’m hopeful and I fully expect that that will become law. And we will then be in compliance with the global minimum tax.