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McHenry to Yellen: We Must Exert Maximum Pressure on Moscow
Washington, Apr 6 -
Today, the House Financial Services Committee is holding a hearing with Treasury Secretary Janet Yellen. Republicans will discuss the state of the international financial system and hold the Biden Administration accountable for the Treasury Department’s international activities, specifically those at the international financial institutions. Watch Republican Leader Patrick McHenry’s (NC-10) opening remarks here. Read Republican Leader McHenry’s opening remarks as prepared for delivery: “Thank you, Madam Chair; and thank you Secretary Yellen for appearing before the Committee. “It has been a long time coming. I know Democrats hold the House, Senate, and White House. But it is our expectation that the Treasury Secretary comply with the law, and appear before our Committee and other Committees as the law dictates. “So, we’re grateful you’re here. But this is long overdue, especially considering the Russia-Ukraine conflict and also what we note on Capitol Hill—that the Chinese government is taking notes, especially on the U.S. response in this conflict. “The Biden Administration’s sanctions have helped isolate the Russian economy, but it was reactive at best. “We watched as Russia amassed troops at the border last fall, all the while claiming no plans of invasion—a claim parroted by Chinese officials as late as February 23. “At the same time, we see China’s continued activities in the Taiwan Strait, and they’re telling us that supporting Taiwan is ‘dangerous’ to our relationship. “We must remain clear-eyed about who we’re dealing with here. China is feeling the pinch of its no-limits partnership with Russia. “While the Biden Administration eventually sanctioned Russia, it also unwittingly provided a means by which China could help Russia circumvent those sanctions. "Let me explain. “Last year, the Department bypassed Congress and approved a general allocation of International Monetary Fund Special Drawing Rights, sending Russia and Belarus more than $18 billion in no-strings-attached liquidity. “State sponsors of terrorism like Iran and Syria received billions more, by the way. “Republicans warned that an SDR allocation ran counter to U.S. sanctions policy. As the Putin regime continues its assault on Ukraine, it is clear our concerns were justified. “And yet, even OFAC seeks to block Russia’s access to foreign reserves, the country’s SDR lifeline may still be exchanged for—get this—Chinese RMB. “Now, U.S. officials have to ask foreign countries not to redeem the very same Russian SDRs this Administration pushed for just a few months ago. “That makes no sense. “You must recognize that Congress is your partner in this fight. And your department has a duty to keep us informed. But to date, we have yet to receive certain reports related to international financial institutions. This includes policies regarding China, Taiwan, and efforts against terrorist financing. “I appreciate Treasury’s work in Terrorism and Financial Intelligence. But here too, you must respect the oversight role that Congress holds. It is simply unacceptable that Treasury officials have dodged public hearings for as long as they have. “We must work to ensure that we have maximum pressure on Moscow so that the Putin regime changes course in Ukraine. But at the same time, we cannot take our eyes off the threat that China poses and the risks that a rising China poses to the stability of the world. “Secretary Yellen, I look forward to your testimony today. “I yield back.” ###