According to the testimony of Secretary of the Treasury Janet L. Yellen today, June 4, 2024, before the Senate Appropriations Subcommittee on Financial Services and General Government, Yellen acknowledged US economic growth to date and made funding requests for cybersecurity and sanctions related to Hamas, Iran, and Russia.
Regarding economic growth, Yellen said:
Over the past three years, Treasury has helped drive a historic economic recovery and put our economy on a strong path for the medium- and long-term.
GDP growth has been strong, growing 3.0 percent over the past four quarters.
Moving onto the level of inflation, she said, “Inflation has declined substantially since its peak, even as we have more work to do to address high costs and give families more breathing room.”
While the mention of "high costs" and the need for "breathing room" are important acknowledgements regarding the difficulties experienced by hardworking individuals and families during the #Fed 's campaign of "higher interest rates for longer," Yellen's statement did not elaborate further on the topics or whether the issues were urgent enough for immediate action.
Concerning #Employment and #labor , she noted that “the labor market is remarkably healthy.”
Turning to #Geopolitics , a matter impacting the economy that is sometimes not factored into the economic equation by struggling citizens, Yellen said:
I am heartened that Congress passed crucial support for Ukraine and for other allies.
Treasury continues to impose sanctions to constrict Russia’s ability to wage war and we are working with our partners to unlock the economic value of immobilized Russian sovereign assets.
She added:
Treasury is also using the tools at our disposal to respond to conflict in the Middle East and to responsibly manage the U.S.-China economic relationship, including making sure that American workers and firms can compete on a level playing field and protecting our national security.
The attention paid by the #Treasury to these areas when making requests in the President’s FY 2025 Budget may indicate that geopolitics plays a more prominent role in policy decisions than some members of the public realize or appreciate. (Foreign policy decisions can impact international relationships, affecting trade, national security and, ultimately, the economy.)
Having emphasized the issues mentioned above, Yellen made the following budget request:
First, the Budget requests $12.3 billion in discretionary resources for the Internal Revenue Service.
We need resources so that we can continue saving the American people time and money and helping reduce the deficit. The IRS is inviting all states to participate in Direct File as soon as next filing season and intends to expand it to support all of the most common tax situations over the next few years. And we will keep working to close the tax gap driven by wealthier Americans, which costs us over $600 billion a year.
She added:
Second, the Budget requests funds to allow Treasury to address emerging threats, such as $312 million for Treasury’s Departmental Offices, including to support investment security in sensitive technologies and the stability of the financial system, and $150 million to enhance cybersecurity and protect our systems against intrusion by malign state actors.
Third, the Budget requests $231 million for the Office of Terrorism and Financial Intelligence, which provides critical financial intelligence and sanctions-related economic analysis, including to support sanctions related to Hamas, Iran, and Russia. It also requests $216 million for the Financial Crimes Enforcement Network to protect the financial system and combat illicit finance.
While all members of the public may not have time to read all of the Treasury's statements, they can be useful for examining overall policy priorities.
Such examination may lead members of the public to ask further questions and keep policymakers accountable.