Treasury Secretary Yellen Promotes Fiscal Responsibility for 2023 Budget

Treasury Secretary Janet L. Yellen outlined Treasury's fiscal year 2023 budget priorities which will focus on investments in education, medical care and affordable housing, as well as "tax reforms that enable deficit reduction and prioritize a fairer tax system."

In testimony before the Senate Committee on Finance and testimony before the House Committee on Ways and Means, Ms. Yellen highlighted Treasury's actions from the previous year regarding efforts to (i) curb inflation, (ii) promote steady and stable growth and (iii) implement financial pressures on Russia. Ms. Yellen stated that despite projections of high levels of unemployment and inflation in 2021, the economy experienced positive growth and unemployment reached historic lows. She commended Congress for its role in promoting economic recovery through legislation such as the CARES Act, the Consolidated Appropriations Act and the American Rescue Plan.

Ms. Yellen brought attention to current economic challenges, specifically, high levels of inflation and disruptions to the global supply chain caused by the COVID-19 pandemic and Russia's invasion of Ukraine. She urged additional bipartisan progress on infrastructure which could continue to stimulate the economy and help curb inflation. Additionally, Ms. Yellen described the efficiency of sanctions imposed by Treasury on Russia, noting that projections predict a double-digit decline in Russian GDP in 2022 and high levels of inflation.

For the upcoming year, Ms. Yellen said that Treasury will continue to cut deficits and keep the economic burden low on average families. She said Treasury will prioritize tax reform, including pursuing a global agreement on international tax reform, which would include a global minimum tax, with revenues going toward humanitarian and COVID-19 relief efforts.