The head of the US Treasury Yellen talks about the need for partnerships in the cyber private sector

US Treasury Secretary Janet Yellen said the Biden administration’s focus on cybersecurity is critical to the country’s economic stability. Last week, speaking at the Economic Club of New York, Yellen also emphasized that a modern, supply-side economic approach to cybersecurity puts the United States “on track to building an economy that will serve us well in the long term.”

“(T)onditional supply-side economics wrongly assumes that policies like tax cuts for those at the top and deregulation will drive growth and prosperity for the entire nation,” Yellen said. “Modern supply-side economics involves collaboration with the private sector – focused on public interventions to create an enabling environment for businesses and drive private sector investment.”

She cited the Inflation Reduction Act as an example of a tool stimulating modern supply-side economics. “The president’s budget proposes ambitious policies to support a stronger workforce, from ensuring affordable and high-quality child care to increasing scholarships to lower college costs across the country.”

She believes programs like this support private sector demand across all sectors, including the talent-starved cybersecurity sector.

Cybersecurity is a top priority

Yellen made cybersecurity a top priority, emphasizing its importance for both the public and private sectors. “Cybersecurity is no longer a niche issue, but a fundamental element of our economic infrastructure,” Yellen said.

This public-private partnership extends to understanding and responding to threats, but also to bringing in business leaders in the “financial sector as we finance the activities of the federal government.”

Yellen highlighted recent supply chain and cyber incidents in which private sector cooperation was critical to mitigating potential damage. She praised U.S. businesses for their resilience and role in shaping the cybersecurity framework.

“Financial stability is inextricably linked to cybersecurity,” Yellen said, emphasizing that such cooperation is essential to identifying vulnerabilities and responding to threats in real time.

Mitigating gaps in the supply chain

Yellen also touched on the international aspect of cybersecurity, especially in the context of economic relations with countries such as China. She expressed concerns about macroeconomic imbalances and unfair trade practices that exacerbate vulnerabilities in global supply chains.

“Our economic strategy must adapt to these challenges by integrating robust cybersecurity measures,” she said, advocating for policies that ensure a level playing field and protect critical infrastructure from foreign cyber intrusions.

Yellen also emphasized the need to support a safe and competitive economic environment. She emphasized that cybersecurity is not just a technical issue, but a strategic economic imperative.

“Our future economic strength depends on our ability to defend against and respond to cyber threats,” Yellen said, calling on governments and business leaders to prioritize cybersecurity in their strategic planning.

The remarks should help highlight Yellen’s role in shaping economic policy and her commitment to addressing today’s challenges. As the United States navigates an increasingly complex global landscape, Yellen’s focus on cybersecurity will be critical to maintaining economic stability and competitiveness.

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