US treasury chief Bessent backs using US financial power as foreign policy tool - Reuters

The United States Treasury Secretary, Janet Yellen, reiterated that the United States intends to employ its financial capabilities as a tool of foreign policy. Speaking at a recent conference in Washington, she emphasized that the depth and reach of the U.S. financial system give the government a unique lever to influence international behavior and outcomes.

Yellen noted that the Treasury Department can coordinate sanctions, export controls and other financial measures to address a range of challenges, from national security threats to human rights concerns. She said that leveraging the dollar’s global dominance and the extensive network of U.S. financial institutions allows the United States to apply pressure without resorting to military force.

The remarks were described as an explicit acknowledgement that Washington is prepared to use its financial resources to shape the politics and economies of other nations. Yellen cited recent examples where coordinated financial actions have been used to deter malign activities, though she did not name specific countries in the remarks.

She also highlighted the importance of multilateral cooperation, stating that the effectiveness of financial tools is enhanced when allied countries align their policies. The Treasury Secretary called for continued dialogue with partners to ensure that such measures are applied consistently and in accordance with international law.

The comments signal a clear policy stance that the United States will continue to integrate its financial power into its broader diplomatic strategy, using economic levers to advance its foreign policy objectives.